You can set up manufacturing account resolution for the following accounts in Manufacturing Control Maintenance.
|
Accounts |
Where Used |
Description |
General Ledger Posting |
|
Inventory |
Material Posting Work Order Posting |
This account is used to temporarily record inventory being used for manufacturing. It represents the change in inventory of the components and manufactured products during manufacturing. |
Material Posting: Inventory (Cr) = Work in Process Material (Dr) Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) [Only if there are returns] Work Order Posting: Standard Cost Variance (Cr) = Inventory (Dr) [Only if the costing method is Standard and the work order is not completed] Work Order Posting: Standard Cost Variance (Cr) + Work in Process Material (Cr) = Inventory (Dr) [Only if the standard cost costing method is used and the work order is completed] Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) + Work in Process Labor (Cr) + Work in Process Overhead (Cr) + Work in Process Outside Processing (Cr) [Only if both standard and non-standard cost costing methods are used] |
|
Work in Process - Material |
Material Posting Work Order Posting |
This account is used to record costs of materials for work in process. When materials are posted, this account is debited for the total cost of all materials. |
Material Posting: Inventory (Cr) = Work in Process Material (Dr) Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) [Only if there are returns] Work Order Posting: Work in Process Material (Cr) = Scrap Expenses (Dr) [Only if there is scrap] Work Order Posting: Standard Cost Variance (Cr) + Work in Process Material (Cr) = Inventory (Dr) [Only if the standard cost costing method is used and the work order is completed] Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) + Work in Process Labor (Cr) + Work in Process Overhead (Cr) + Work in Process Outside Processing (Cr) [Only if both standard and non-standard cost costing methods are used] |
|
Work in Process - Labor |
Work Order Posting |
This account is used to record labor costs for work in process. |
Work Order Posting: Absorbed Labor (Cr) = Work in Process Labor (Dr) Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) + Work in Process Labor (Cr) + Work in Process Overhead (Cr) + Work in Process Outside Processing (Cr) [Only if both standard and non-standard cost costing methods are used] |
|
Work in Process - Overhead |
Work Order Posting |
This account is used to record overhead costs for work in process. |
Work Order Posting: Absorbed Overhead (Cr) = Work in Process Overhead (Dr) Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) + Work in Process Labor (Cr) + Work in Process Overhead (Cr) + Work in Process Outside Processing (Cr) [Only if both standard and non-standard cost costing methods are used] |
|
Work in Process - Outside Processing |
Work Order Posting |
This account is used to record work in process for outside processing. |
Work Order Posting: Absorbed Outside Processing (Cr) = Work in Process Outside Processing (Dr) Work Order Posting: Inventory (Dr) = Work in Process Material (Cr) + Work in Process Labor (Cr) + Work in Process Overhead (Cr) + Work in Process Outside Processing (Cr) [Only if both standard and non-standard cost costing methods are used] |
|
Absorbed - Labor |
Work Order Posting |
This account is used to record labor costs for manufacturing. |
Work Order Posting: Absorbed Labor (Cr) = Work in Process Labor (Dr) |
|
Absorbed - Overhead |
Work Order Posting |
This account is used to record overhead costs for manufacturing. |
Work Order Posting: Absorbed Overhead (Cr) = Work in Process Overhead (Dr) |
|
Absorbed - Outside Processing |
Work Order Posting |
This account is used to record absorbed outside processing costs for manufacturing. |
Work Order Posting: Absorbed Outside Processing (Cr) = Work in Process Outside Processing (Dr) |
|
Variance - Labor |
Work Order Posting |
This account is used to record labor variance amounts associated with costs that are entered when confirming a work order. |
Work Order Posting: Variance Labor (Dr) + Variance Overhead (Dr) + Variance Outside Processing (Dr) = Standard Cost Variance (Cr) [Only if the standard cost costing method is used and the work order is completed] |
|
Variance - Overhead |
Work Order Posting |
This account is used to record overhead variance amounts associated with costs that are entered when confirming a work order. |
Work Order Posting: Variance Labor (Dr) + Variance Overhead (Dr) + Variance Outside Processing (Dr) = Standard Cost Variance (Cr) [Only if the standard cost costing method is used and the work order is completed] |
|
Variance - Outside Processing |
Work Order Posting |
This account is used to record outside processing variance amounts associated with costs that are entered when confirming a work order. |
Work Order Posting: Variance Labor (Dr) + Variance Overhead (Dr) + Variance Outside Processing (Dr) = Standard Cost Variance (Cr) [Only if the standard cost costing method is used and the work order is completed] |
|
Scrap Expenses |
Work Order Posting |
This account is used to record scrap amounts for work orders. |
Work Order Posting: Work in Process Material (Cr) = Scrap Expenses (Dr) [Only if there is scrap] |
|
Standard Cost Variance |
Work Order Posting |
This account is used to record changes to the standard cost of components that are made when a work order is open. |
Work Order Posting: Standard Cost Variance (Cr) = Inventory (Dr) [Only if the standard cost costing method is used and the work order is not completed] Work Order Posting: Standard Cost Variance (Cr)+ Work in Process Material (Cr) = Inventory (Dr) [Only if the standard cost costing method is used and the work order is completed] Work Order Posting: Variance Labor (Dr) + Variance Overhead (Dr) + Variance Outside Processing (Dr) = Standard Cost Variance (Cr) [Only if the standard cost costing method is used and the work order is completed] |
For more information, see General Ledger Account Resolution.