Cloudy Business Ops 360 Knowledge Base

Entity Scoped Item & Variant

The Entity Scoped Item & Variant object in Cloudy Business Ops 360 is used to define and manage item-specific pricing and tax rules at the Legal Entity level. This ensures that businesses operating multiple legal entities can maintain entity-specific purchase prices, selling prices, and tax configurations for the same product or product variant.

This object acts as a bridge between Item/Item Variant and Legal Entity, allowing you to customize and control item-related financials per entity.

Use of Entity Scoped Item & Variant in Cloudy Business Ops 360

The Entity Scoped Item & Variant object helps businesses:

• Set Entity-Specific Pricing: Maintain different purchase and selling prices for the same item depending on the legal entity.
  
• Configure Tax Rules Per Entity: Ensure compliance by assigning tax rates per entity.
  
• Support Multi-Entity Operations: Easily scale operations where each legal entity may have its own supplier agreements, margins, or tax setups.
  
• Improve Accuracy: Avoid pricing or tax mismatches when transacting across multiple entities.

Checkbox Functionality

Example Business Scenario

Scenario:
A company operates under two legal entities: Entity A and Entity B.

• For Item = Laptop,
  
  • Entity A:
    
    • Purchase Price = ₹45,000 (Vendor Tax Included)
      
    • Sell Price = ₹55,000 (Tax Excluded)
      
    • Tax Rate = 18% GST
      
  • Entity B:
    
    • Purchase Price = ₹42,000 (Vendor Tax Excluded)
      
    • Sell Price = ₹52,000 (Tax Included)
      
    • Tax Rate = 12% GST
      

Outcome:
When a sales order is created under Entity A, the system uses ₹55,000 as base price and adds tax separately.
When a sales order is created under Entity B, the system considers ₹52,000 as tax-inclusive and calculates the tax split automatically.

This ensures accurate pricing and tax compliance for each legal entity without manual adjustments.