Importing data into Posterita
Importing Data into Posterita
In order to assure that data is well recorded, it is firstly essential to be familiar with the different headings on the excel sheet.
Revenue Recognition
Revenue recognition is the column where one has to define the category of the product. For example, the garments section can be categorized into different sub-sections namely caps, t-shirts, shirts, polo shirts, dress and so on. The importance of categorizing your products will result in allowing you to differentiate between different revenue streams in which you business is based upon. It is worthwhile noting that being too confined will produce reports that will not be readable while on the other hand, being too broad will not provide relevant information.
Bar code
Bar code is a code printed on most of the items, and is used for quick recognition of the products through the use of a bar code reader. It is important to point out that each bar code number assigned to a product should be unique and no two or more products should bear the same bar code number.
Name
The name section is the place where you enter the name of the product. Again, each product should have a unique name assigned to it, for example, t-shirts and caps. In the case where there are several different items found in one category, they need to be demarcated by another criteria. Say in the t-shirt category there are many different items and need to be re-classified. One can do so by differentiating them by their size.
Purchase price
The purchase price is the price at which you buy the product. The price should be at cost and should not include any taxes charged like VAT or sales tax.
List price
The marked price is the price at which you intend to sell the product. This is the price which is generally shown on the price tag of the item. Again, the marked price should not include any taxes charged upon, like VAT or sales tax.
Standard price
The standard price is the price at which the product is intended to be sold and should always be equal to the list price. It should not include VAT or sales tax.The system always read the standard price as the selling price of a product. Assume that on a particular period in time, like for Christmas, your company decides to put a special promotion on a product by giving a discount. For example, you decide to put a discount on product “X” by reducing its price from Rs 250 to Rs 199. This is the place where the discounted price (Rs 199) should be entered (and not the list price. The system will read this price by default and display it. By doing so, the system will be able to compare the list price (price at which you intended to sell the product) and the standard price (discounted price) and will be used to produce business reports.
Limit Price
This is the minimum price at which a product can be sold at any time. For example, the list price of product “X” is Rs 250. This is the price at which you intend to sell the item. Say that you can afford to put a promotion price of Rs 150 for this product but you cannot afford to go below this price for any promotional period at any time. Therefore, the limit price for product “X” is Rs 150. Note that it should not include VAT or sales tax.
VAT %
It is the percentage of VAT that should apply for the product. In case the product is exempted from VAT, the percentage should be zero (0). For the products on which the VAT is applicable, the appropriate VAT percentage should be listed, for example, a 15% VAT charge to be applied as per the current VAT rate prevailing in Mauritius.
Stock in Hand
This is the physical inventory, that is, the number of products available in the stock at the time the items are being posted in the system.
Let us view different scenarios in order to get a better understanding
Scenario 1
Revenue Name Purchase List price Standard Limit price VAT % recognition price price Tshirt Ozone-size 160 250 250 250 15
large
In this particular situation, the system will automatically calculate the total purchase price of Ozone by adding a 15% VAT charge on the purchase price listed. Therefore, the product will cost you Rs 184 [Rs. 160 +VAT (15%)]. Same process will be carried out when calculating the selling price. One interesting point to now in this situation is that the limit price is equal to the list price which means that you will not be able to offer any promotion for this item.
Scenario 2
Revenue Name Purchase List price Standard Limit price VAT % recognition price price Tshirt Babe-size 110 200 160 160 15
For this scenario also, the system will automatically calculate the total purchase price and total selling price by adding a 15% discount on them.
The list price for this product is Rs 200, which means you intended to sell it for this amount. But the standard price is different from the list price which means that this is the price at which the item is currently being sold. As the limit price is Rs 160 as well, it implies that you will not be able to sell this item below this price.
Scenario 3
Revenue Name Purchase List price Standard Limit price VAT % recognition price price Tshirt ZoneA 200 300 300 250 15
As usual the system will automatically calculate the total purchase price and total selling price by adding a 15% discount on them.
In this context, the list price and the standard price is the same which means you are currently selling the product at the price you intended to sell it. As the limit price is Rs 250, it implies that in the future, you can decide to reduce its price to Rs 250 at most.
Scenario 4
Revenue Name Purchase List price Standard Limit price VAT % recognition price price Tshirt ZoneC 200 300 250 225 15
For scenario 4 as well, the system will automatically calculate the total purchase price and total selling price by adding a 15% discount on them.
For this situation, the list price is Rs 250 which means that you intended to sell it for this amount. But as the standard price is at Rs 250, it indicates that you are currently selling it at this price. However, you may wish to reduce it at a later stage as the limit price of Rs 225 is has not yet been reached.
