Production Accounting

Maintenance > Preferences > General
Real time Cost Updates with Ledger Updating

Production Accounting using Real Time Costing
Based on the Cut Ticket Module

Required Accounts (any numbers are OK)
1300 Inventory, Raw Materials
1330 Production Labor (Pending A/P)
1400 Work in Process
1500 Inventory Finished

Setup:

Preferences > Production and Cut Tickets

5C, Parts Previously Used
(Allows separating Fabric and Labor costs over time)

Preferences > Ledger

Default Finished Inventory Asset Account: 1500
Default Raw Materials Asset Account: 1300
Default WIP, Work in Process Asset Account: 1400
(There is no preference for Production Labor account)
Finished Goods Inventory > Other Data > Ledger Setup
Inventory Asset: 1500

Parts > Other Data > Purchasing

For Raw Materials
GL Asset Account: 1300
GL WIP Account: 1400

Parts > Other Data > Purchasing
For Labor (Items for Cost Only)
GL Asset Account: 1330
GL WIP Account: 1400

Insert Cut Ticket
No Transactions

Allocate Parts
No Transactions

Parts Used: Use Parts
DR 1400, WIP
CR 1300, Parts Inventory

Parts Used: Use Labor
DR 1400, WIP
CR 1330, Production Labor

Received Finished on Cut
DR 1500, Inventory Finished
CR 1400, WIP

Insert Payable for Labor against Account 1330, Production Labor
DR 1330, Production Labor
CR 2100, A/P

Revised 11/8/2016 – SV