Moving cost from an expense account to a production order

  • Moving cost from an expense account to a production order

    Posted by Elizabeth McQuiston on April 23, 2024 at 11:05 am

    We want to code all of our packaging cost to a G/L account as it’s used by multiple departments. But for one of our products (16 items) that we produce we know the exact amount of the packaging cost so I want to move that cost from the G/L account to the finished inventory. Is there an easy way to do this within the production order posting? For example, we purchase $5,000 in packaging supplies – posted to the g/l account shop supplies. We want to allocate $30 of this expense to each skid of product produced, lowering our expense and increasing our inventory cost.

    Elizabeth McQuiston replied 1 week, 5 days ago 3 Members · 4 Replies
  • 4 Replies
  • Chris Warren

    Member
    April 24, 2024 at 10:51 am
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    One option would be to make your packaging material an item, and then consume it in the production order. This is how we’ve done it for a lot of our products.

    Another option would be to do a revaluation of the item after the production order is finished, making sure that the inventory revaluation account is set to that expense account in the General Posting Setup.

    Apart from that, I’m unaware of another way to add a ‘charge’ to a production order.

  • David Wiser

    Member
    April 24, 2024 at 2:33 pm
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    You could set up a work center for the expense and add that to the routing. Change the Gen. Prod. Posting Group to one tied to the GL account you want to post to. Then you can post output for that work center to bring in the cost. If there is a specific cost for a routing for that work center, you can enter the specific cost on the routing line (after clicking on the “Specific Unit Cost” flag on the work center.

    • Chris Warren

      Member
      April 24, 2024 at 10:30 pm
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      Using another work center and the specific unit cost flag is a great idea.

    • Elizabeth McQuiston

      Member
      May 8, 2024 at 9:26 am
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      Thank you David, this works exactly as I wanted! Appreciate the help

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