Monitoring manufacturing in the Work Orders module, you can remove records of warehouse value (cost according to valuation price) in the Automatic Posting of Material Consumption menu for:
1. Cost of Goods Sold
Example: A preset sales document type 300, item type 200, cost according to valuation price is €1,000.
Settings of document type 300 - Sale:
Posting material consumption:
Post internal issues of goods that are subsequently folowed by a collective invoice in the same way (see for example a predefined
document type 350).
2. Transfer Goods Between Warehouses
Example: A predefined document type for transferring to WO warehouse (from retail warehouse), item type 300, cost according to valuation price 1,000.
Settings of document type 220 - Transfer RETAIL -> WO:
Posting material consumption:
3. Document Type of (Internal) Receiving of Finished Prouducts on Warehouse
Example: A preset sales document type 610, item type 300, cost according to valuation price is €1,000.
3.1. In Case a Company Uses Semi-finished and Finished Products of Its Own Line in Manufacturing Process...
In such cases you have to use a contra account for recording work in progress as contra entry to own stock (see for example a predefined
document type 610):
To close a business event you have to post transfer of cost to stock of unfinished products using template for automatic posting - see
transfer cost to stock.
In addition, the procedure mentioned above is the only valid one using
scheduling manufacturing - MF.
3.2. In Case a Company IS NOT Using Semi-finished and Finished Products of Its Own Line in Manufacturing Process...
In such cases you have to use the account for recording transfer of cost to stock as contra entry of own stock (see
document type 610, figure 2):
The procedure described above is valid only when using
SE edition (simple manufacturing ) where work in progress is not included. Plus, the company does not have semi-finished products and own products on stock.
4. Document Type for (Internal) Issue to Work Orders
4.1. Relieving Inventory of Own Semi-finished Products and Finished Products
You cannot remove records of own semi-finished and finished products and debit costs. The consumption of material, packaging, goods, etc. already debit costs in manufacturing. Hence transfer the value of consumption of own products and semi-finished products to debit side of account for work in progress. It is relieved when transferring a finished product to warehouse (see item 3.1.).
Example: A preset sales document type 620, item type 300, cost according to valuation price is €1,000.
| Account |
Debit |
Credit |
| 600 - Work in progress |
1.000 |
|
| 6301 - Products in own store - for own manufacturing |
|
1.000 |
4.2. Relieving Inventory of Consumption of Goods, Materials and Packaging
Example: A preset sales document type 620, item type 200, cost according to valuation price is €1,000.
| Account |
Debit |
Credit |
| 400 - Costs of materials |
1.000 |
|
| 6601 - Merchandise in own store for manufacturing |
|
1.000 |
4.3. Relieving Inventory of Consumption of Own Services
For cost of own services rendered which comprise the main part of cost price for own semi-finished products and products, you can confirm the cost on the account for recording work in progress (see item 3.1.) or the account for recording transfer of costs to stock (see item 3.2.).
Work in progress unavailable (SE Manufacturing module)
The difference between credit transactions to account 6000 (item 3.1.) or 4900 (item 3.2.) and debit transactions to account 4000 represents the cost of own manufacturing services that are included in product's cost price.
The cost is not automatically posted from material consumption.
The difference between credit transactions to account 6000 (item 3.1.) and debit transactions to account 4000 represents the following:
- The cost of own manufacturing services that are included in product's cost price, and
- cost of work in progress.
The cost of own manufacturing service is not automatically posted from material consumption.
6. Value of Quantity of Own Service Consumed
The difference between debit transactions and credit transactions to account 6000 - Work in progress is represented by the cost of own service (plus, the cost of work in progress in
scheduling manufacturing (MF)). It is not automatically posted from material consumption.
The value of quantity of own services consumed contained in the product value can be found in the
material movements report (default settings) by:
- Restrict report by service ID (by default: 700).
- Select internal issue movements where you record own manufacturing services (by default 620, 660 and 690).
- Specify dates of packing slips (e.g month for which you already posted material consumption and for which end date of material movements was entered).
Template for setting up material movements has already been set - "Own service of finished products stock".
Related topics:
For a general description of functions see: