I’m rookie in manufacturing. I need add additional expences to produced item cost. At every month begining I receive invoices of all manufacturing expences maded per prior month. I need to share them to all manufactured items per this month & add it ti item cost. Items can be sold then I need recalculation of cost. Can manufacturing module solve it ?
Hi, You cant post any entry to finished production orders. It means that you can’t finish production orders before you post expenses. If you do not need finish orders you can post allocated amounts via output journal. I think it is better post such amounts as overhead and you need show field Overhead Rate . You can post these amounts directly to real Work Centers or you can create additional Work Center (COMPANY OVERHEAD). The Direct Unit Cost field should be 0, Overhead Rate = Allocated Amount/Quantity. Field Finished must be No. P.S. In the table Fin. Prod. Order Ledg. Entry field Type has additional options Account GL and Resource . I think in the future we will be able to post expenses directly to GL. Valentin Gvozdev BMI Inc.
Hello, The generally accepted way to charge ‘expenses’ to production or to inventory items is to set up an overhead % or rate either on the machine center/work center or on the item card. As material is purchased an additional debit is made to the inventory account and a credit is made for the like amount to the ‘expenses applied’ account using the rate or % on the item card. When production is reported via the output journal, a debit is made to WIP and a credit to the ‘expenses applied account’ using the rate or % on the work center/machine center card. At the end of an accounting period, an analysis is made to see if the amount applied is more or less that the actual expenses. If necessary, the rates are changed to be more closely in line with the actual expenses. If you want to charge production(WIP) or inventory with the precise amount of expenses for the accounting period, you would have to do a customized function to do it. I can elaborate more if you e-mail me; rbergman@frontline-us.com Bob Bergman Manufacturing Specialist Aston IT Group rbergman@frontline-us.com