Odoo Accounting Setup for Polymerat L.L.

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Date: 15.12.2022

1. Company Business
Polymerat L.L.C has been founded to focus on trading of Polymers and Building Materials. Both
Product categories has been placed in Odoo.

Polymerat is tightly connected to Integrated Blocks FZE in United Arab Emirates, as the later
could easily process payments from UAE and Polymerat being a Libyan company has the
challenges of foreign currency transfers.

2. Setup and Assets

2.1 Foundation fees: Includes all the fees for related documents including
2.2 Office & Warehouses: The company has been founded in March/April 2022 in Tripolis –
Libya. We have rented 2 adjacent warehouses with equal size of 30m x 24m (720 sqm) each,
total of 1440 sqm. Further, an office attached to warehouse 1 has been renovated and
rented. As we invested a good for preparation, we also agreed with landlord to have a
reduced rent for the first year until 30.03.2023.
The following names shall be assigned to the warehouses
1. WH1: Al Hadba WH1 (dedicated mainly for Building Materials), may also be used for
Polymers.
2. WH2: Al Hadba WH2 (Dedicated mainly for Polymers)
2.3 Equipment: Equipment’s has been purchased which can facilitate the operation at store.
Equipment shall be considered as assets and depreciated on 3 years term. Such equipments
also includes the laptops for employees and office TV.
2.4 Banks: Company accounts opening and maintaining.

Insert table with spends

3. Accounts:
Within Odoo we need to create the following accounts
a. Purchase account for Building Materials
b. Purchase account for Polymers
c. Selling account for Building Materials
d. Selling account for Polymers
e. Cash account for LYD
f. Cash account for USD
g. Cash account for AED
h. Expense accounts as follows:
1. General Expenses (EXP_GEN) – Link to Expenses in accounting
 2. Office Supplies (EXP_OS) – Link to “Office Supplies” under Expenses
3. Operations: ?? to be discussed… these are the additional costs which raise
because of operation requirement i.e hours workers for unloading truck, fuels
required for generator etc.
4. Rents (EXP_RNT) – Link to “Rents” under Expenses.
5. Fuels (EXP_FUL) – Link to “Office Supplies” under Expenses
6. Services (EXP_SER) – Link to “Service & Maintenance” under Expenses
7. Maintenance & Repairs (EXP_MANT) – Link to “Service & Maintenance” under
Expenses
8. Salaries (EXP_SAL) – Link to Salaries in accounting
9. Projects (EXP_PRO) – link to “PRO & INV” account under Expenses
10. Investment (EXP_INV) -– link to “PRO & INV” account under Expenses
11. R&D (EXP_RD) – Link to R&D account under Expenses
12. Travels (EXP_TRA)
13. Bonuses (EXP_BON) – Link to Salaries account under expenses
14. Legal (EXP_LAW)
15. Sales & Marketing (EXP_S&M) – Link to BD account under Expenses
16. Business Development (EXP_BD) – Link to BD account under expenses
17. Private (EXP_P) – to be discussed.

Notes to some accounts:

1. Projects/ Investments: There are projects which we work on for company development,
as additional activity for others or as manufacturing business. The manufacturing
business comes in certain cases, were for example. Material price is above market price,
and we lose in case of direct selling. In some cases, we contract one of the
manufacturers to manufacture and market the product on our cost and reduce losses
through investing in manufacturing of product (this will have a longer cycle. In this case
we will have no profit or minor loss on raw material. The profits from manufacturing
shall be derived separately. This shall go through this account.

2. Private (EXP_P): As we have cash in our place, I usually tend to use from it for private
purchased or other personal stuff. I need to keep record on this without effecting the
company account. An invoice can be issued at Cost in chosen time and I could payback
the amount back or deduct it as spends. The aim is to have a separate account which
isn’t influencing the business number (only the cash)

4. Currencies
Libyan Dinar is used as main currency for sales in Libya. USD is often used for Purchasing from
other countries. As we currency changes, we often purchase USD to guarantee a price level in
Local market. Therefore, USD cash account must be in place. In addition, AED cash account
should be in place as we also deal with AED in some cases. The transactions fees can either be
separate or included in currency exchange transaction.
 5. Template
We have used a simple word document for Invoices. We prefer to have the same background
picture, header footer in Odoo. The template is attached. Kindly put this in Odoo to be used for
future invoices.

6. Monthly spends
Kindly consider the following monthly entries
6.1. Salaries
6.1.1 Raad Adham: Feb 2022:1000 LYD, March until July 2000LYD, Aug, Sept: 0
6.1.2: Heluf: April till Septmeber 2022: 700 LYD
6.1.3: Ahmed El Dali: Sept till Nov: 1500 Monthly
6.2. Office Internet: Starting April: 95 LYD/Monthly
6.3. Telefon cards: Starting March2022: 120 Monthly
6.4. Water: Starting April: 150 Monthly
6.5. Coffee: Starting April 90 LYD/Monthly
6.6. Fuel: May, June, July, August, September: 25 LYD each month
6.7. Electricity: Starting May 2022: 50 LYD per month
6.8. Rent: Starting April 2022: 50 LYD for office, 50 LYD for WH1, 50 LYD for WH2, 10
LYD for car

7. App Development (Option)

It is intended to create an App from Odoo to share the prices online with customers. It should
be a simple app, listing the prices and available materials, where clients can see the price and
send messages or call for orders.