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How much does it cost to make and sell a bottle of wine? How much is earned or lost?

In this section we implement an online open-source Enterprise Resource Planning (ERP) platform.

Essentially, we want to build an online platform where anyone can view:

  • How much money are we earning from selling wine, winecoins, and other services? How much money do we spend to produce our wine?
  • What is our inventory?
  • What is the current valuation of the company? 

This section defines the functional and systemic requirements for an online, open-source ERP (enterprise resource planning) platform to cover the following modules:

  • Accounting
  • Inventory

           How much money are we earning from selling wine, winecoins, and other services?

  • Where are we selling?

  • How is this managed in different currencies?

  • What are consumers paying for our wine in shops (not buying winecoins)?

    How much money do we spend on:

  • Grape Cultivation: Farmers, chemicals, tractors, irrigation, taxes, fuel, harvesters; .

  • Wine Production: Wine making, bottles, corks, capsules, boxes, labels;

  • Logistics: Moving bottles from A-to-B, cold storage;

  • Administration: Accounting: day-to-day management, legal expenses;

  • Marketing and Communications: Maintaining our presence online, and telling the story;

  • Financial Costs.

    How much does it cost for us to produce a bottle of wine (for each vintage), considering:

  • Production cost

  • Cost changes over time (recurring costs of cold storage)

  • Effects of inflation and currency value fluctuations over time

    What is our inventory?


  • Wine in bottles, at different storage locations
  • Wine (litres) in the winery
  • Fungible materials: boxes, labels, capsules, corks

  • Chemicals

  • Tools

    What is the current valuation of the company?

  • Stock valuation


Asset valuation

We can begin by defining the types of reports that we would like to share with the world, and work backwards from there: 

  1. Custom Reports

Req ID

P

Definition

Owner

Notes

3.1.1

1

The site visitor should be able to access a report which summarizes our sales figures:

What we are selling (winecoins, wine, other items)? Where are we selling?
How much we have sold in each product and region?

Mr. Sinatra


3.1.2

1

Present visitors with a detailed expense report broken down into the following categories:

Mr. Sinatra


3.1.3

1

Production cost

Mr. Sinatra


3.1.4

1

Inventory

Mr. Sinatra


3.1.5

1

Company evaluation

Mr. Sinatra




Accounting

The accounting platform should track the following ledger items:

  1. Expenses
    1. Grape Production
      1. Vineyard workers
        1. Salaries
        2. Taxes
        3. Insurance
        4. Clothing
      2. Services
        1. Cosechadores
        2. Tractor Services
        3. Transportation (grapes to winery)
        4. Electricity
        5. Irrigation
        6. Limpieza de Cupo
      3. Insumos
        1. Agrochemicals
        2. Guano
    2. Wine Production
    3. Wine Storage
    4. Shipping Logistics
    5. Administration and Financial
    6. Marketing and Communications
  2. Sales
    1. Wine Sales
      1. Argentina
        1. Mendoza
        2. Buenos Aires
        3. Córdoba
        4. Rosario
      2. India
      3. Canada
      4. Spain
      5. Brasil
      6. Congo

Inventory

The Inventory Module should track the following stocks:

  1. Items
    1. Wine
    2. Insumos
    3. Promotional materials
    4. Tools and other assets
  2. Locations
    1. Costaflores Organic Vineyard
    2. Winelock
    3. Wine Storage Buenos Aires
    4. India
    5. Warehouse France

Valuation


Master Data Management

Req IDPDefinitionOwner
11

The system should allow to manage the following master data information:

  • Products: Insumos, services (power, gas, ...) and Wine Bottles
  • Business Partners (Suppliers, Customers and Employees)
  • Document Types
  • Taxes
  • Currency conversion rates

1.11

The information for products is:

  • Pricing
  • Product categories
  • Accounting information
  • Product Type: Item, Services or Expense
  • Attributes: Lot, Expiration Date and Year of wine production.
  • Other OB optional and additional information



1.1.11Pricing: Price List Management: the system has to provide mechanisms to easily update prices based on price list schemes and also allow manual modifications.
1.21

The information for Business Partners (Customers, Suppliers and Employees):

  • Business Partner category
  • Accounting information
  • Financial information
  • Credit Management
  • Type: Employee, Customer or Supplier
  • Tax Category
  • Other OB optional and additional information

1.31

Document Types: Openbravo has to allow different document type management for each transaction (either sales or purchase transaction):

  • Purchase Order
  • Goods Receipt
  • Purchase Invoice
  • Sales Order
  • Sales Invoice
  • Goods Shipment
  • Other openbravo standard documents will be created for Payments In and Payments out

Every document type will have the standard printing design offered by Openbravo or Argentina Localization module. Only the following document types will be customizable if needed:

  • Goods Shipment
  • Sales Invoice




1.41

The system will include all the Argentinian mandatory taxes for Costaflores S.A. The most used taxes will be, for Sales:

  • IVA 21%

For Purchase:

  • IVA 21%
  • Percepción (IIBB, IVA, SUS, depending on the supplier)

1.4.11Taxes will be automatically calculated by the system for every transaction
1.51Openbravo supports manually management of currency conversion rate between all the currencies
1.5.12Automatically get the conversion rate from a web service (ApiLAYER)
1.61The price of the tokens by default will be 1 but in each sales order it will vary depending on the value of the token at the moment
1.71

The price of the wine bottle will be fixed and a token will be rewarded, that is, burning a token implies a bottle price of 0, thus leaving an invoice with the following lines (example with 6 units):

  • 6 bottles of wine mtb 18: 600 pesos
  • - 6 tokens myb 18: -600 pesos
  • Logistics services: 100 pesos
  • TOTAL: 100 pesos

More info about the implicit requirements met by openbravo: http://wiki.openbravo.com/wiki/Master_Data_Management

Sales Management 

Req IDPDefinitionOwner
21

The system has to cover the whole sales process from order to cash


2.11The system has the ability register quotations and to transform quotations into sales orders
2.21The system has to have the ability to ship the sold goods to the customer
2.31

The system has to allow the user to bill for the goods shipment or the sales order partially or totally.

The user can decide when to create the invoice manually if it is not downloaded from the e-commerce


2.41The system has to be integrated with Magento commerce
2.4.11

The system has to allow the integration, at least, for the following entities:

  • Customers
  • Products and stocks
  • Orders
  • Payments
  • Invoices

2.4.21Openbravo will be synchronized with Magento based on background processes scheduled in the right order.
2.51Sales invoice has to be sent to AFIP using the official webservices
2.61The system has to meet all the official requirements set by AFIP (Argentinian authorities)
2.71The system allows to manage payments manually or automatically depending on the payment method and if the sales order comes from magento
2.81

The system will allow returns from customers that will follow the opposite flow of a natural sales and will generate the following documents:

  • Return sales order
  • Negative goods shipment
  • Credit Note

2.91The System has to allow sales in several currencies and cryptocurrencies (BTC, ETH, MTB18, MTB 19, etc.)
2.9.11Tokens will be sold as explained in the following flows:
2.9.21

The sales flow for national (Argetina) sales will be:

  1. Sales Order for X "Token product" in the e-commerce site or manually introduced in Openbravo.
  2. Sales Invoice is issued for the customer with the corresponding taxes

When a user wants to burn their tokens:

  1. Sales Order for X wine bottles manually introduced in Openbravo (Phase 2: Integration with Magento and acceptance of MTBs as payment method)
  2. A line for the shipment cost will be added
  3. A discount will be added to the order -X "Token Products" (Phase 2: Crete a process to add this discount and set the applied tokens as burned)
  4. The user will pay only for the shipment service.
  5. Manually create the shipment linked to the Sales Order
  6. Create an invoice linked to the Shipment and Order

2.9.31

Sales flow for international sales (excluding USA) will be:

  1. Sales Order for X "Token product" in the e-commerce site or manually introduced in Openbravo.
  2. Sales Invoice is issued for the customer with the corresponding taxes (Usually Tax exempt)

When users want to burn their tokens:

  1. Sales Order for X bottles of wine manually introduced in Openbravo (Phase 2: Integration with Magento and acceptance of MTBs as payment method)

2.101

Delivery from different warehouses


2.111

Stock with attributes: year and expiration date


2.121
  • The system will allow export invoices but it does not contemplate the export management. If there is additional export information, the corresponding development for future phases will be analyzed

More info about the implicit requirements met by openbravo: http://wiki.openbravo.com/wiki/Sales_Management

Purchasing Management

Req IDPDefinitionOwner
31

The system must allow to register the purchases to the different suppliers of services and supplies


3.11Purchases must be able to be imputed to the final cost of the product through the standard functionality of "Landed Cost"
3.21

The weighting of the cost between the different landed cost will be initially done by hand but the system will provide enough information to obtain it easily:

  • Landed costs registered and linked to the calculated cost of the product using the cost calculation algorithm of Openbravo

3.31The bottle entry will be made through purchase orders to the Warehouse provider (explained again in the warehouse section). The entry will specify batch, expiration, add, (the attributes that Costaflores considers relevant for the traceability of the product)
3.41The system does not control the management of imports


Accounting and Finance

Req IDPDefinitionOwner
41

Purchase and sale invoices will be accounted for


4.11

The system will also allow making manual entries


4.21

The system will allow the accounting of payments against accounting concepts (concepts not included in an invoice, eg: payroll)


4.31

The system will allow tracking of payments to be made and collections to be collected, as well as the registration of all transactions in the different financial accounts (cash, banks, virtual wallets, etc.) - The mtb tokens will be considered products and subsequently vouchers , that is, they will not be taken as a method of payment or a financial account


4.41

The withholdings suffered will be represented as payments by means of a payment method in a specific financial account exclusively for withholdings: withholding + tax (VAT, suss, iibb, etc.)


4.51

The system will allow accounting, manually or through a process in the background


4.61

The system will allow to reset the accounting when necessary (if any correction is necessary)


4.71It will operate with a single accounting system in pesos for the time being
4.81The system allows registering a daily exchange rate with any currency. This type of change will be used by the accounting to calculate the losses or gains by exchange difference
4.91The system allows to overwrite the exchange rate in specific invoice documents (when the provider applies a different exchange rate than that registered in the system)
4.101An accounting scheme and standar account tree will be provided but Openvino users are askeed to adapt it to their needs
4.111

The system will allow extracting the following reprorts:

  • CITI purchases and sales
  • IVA Books
  • Income statement
  • Balance sheet

4.121

The  system has all the taxes set that Costaflores will use


4.131The system will offer the necessary information to make the corresponding liquidations, but it is not integrated with the systems of the afip nor provincial administrations for the liquidations
4.141The system allows recording collections and payments with the different payment methods configured in the system
4.151

A simplistic configuration of the payment methods is suggested, but the system allows the reconciliation of the banking transactions with those of the bank statement


More info about the implicit requirements met by openbravo: http://wiki.openbravo.com/wiki/Financial_Management

Warehouses Management

Req IDPDefinitionOwner
51

The system has multi Warehouse support


5.11

The system allows registering multiple storage bins per store by using x-y-z coordinates, also allows simpler configurations of a single storage bin per store


5.21The system will allow the following warehouse operations:
  • Receptions (entry receip)
  • Deliveries (exit receip)
  • Inventory Counts
  • Merchandise reservattions (if configured, although it does not apply for the sale of tokens)
  • Movements between warehouses
  • Returns

5.31The entrance of bottles will be done by means of entry receipts with the winery supplier that produces the wine. It is not contemplated for the moment to implement the production module
5.41Grape stock will not be taken
5.51It will take stock of labels, corks, etc. by entering it by means of entry receipts, but by not using the production module, it must be removed from the stock by receips X manually (this process is an automation point for a later phase)
5.61

No stock of tokens will be registered since the maximum number of tokens is determined by the ico itself. Therefore, stock will not be synchronized with Magento


More info about the implicit requirements met by openbravo: http://wiki.openbravo.com/wiki/Warehouse_Management



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