Account Usage Production
This page describes the Account Usage Production setting in the Production module.
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The Account Usage Production setting allows you to determine the Accounts that will be used as defaults in your Production transactions. Take care to ensure that the Accounts that you specify here exist in the Account register.
- Components Usage, Production Control
- Paste Special
Account register, Nominal Ledger/System module
- The standard Nominal Ledger Transaction from a Production or Production Operation will credit the value of the components to a Stock Account, credit the Work Cost to a Production Work Cost Account, and debit the value of the final Item to a Stock Account.
- This Transaction therefore simply removes the value of the components from stock and adds the value of the final Item to stock. It will therefore not be possible to distinguish the value of Items removed from stock to be used in Productions from the value of the same Items removed from stock for other purposes (e.g. Delivery or Stock Depreciation). If you need to make such a distinction, you can do so using Components Usage and Production Control Accounts. If you specify both a Components Usage Account and a Production Control Account, the Transaction will contain additional postings, debiting the value of the components to the Components Usage Account and crediting that value to the Production Control Account.
- The Components Usage and Production Control Accounts will be taken from the Item Group to which the component Item belongs (if you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting in the Stock module). If these Accounts are empty or you are not using the Use Item Groups for Cost Accounts option, they will be taken from the component Item (in the case of the Components Usage Account only) or from this setting.
- Work In Progress
- Paste Special
Account register, Nominal Ledger/System module
- Production Operations allow you to carry out Productions in stages. You will be able to remove components from stock at any stage, and add the final Item to stock when the final stage is completed. Apart from the final stage, you will not be adding to stock, but you will need to account for the work carried out so far. The Work in Progress Account is used for this purpose. This Account will be debited with the value of each intermediate Production Operation, and credited with the value of the final Production Operation. This Account will only be used if you are using the Per Production Operation option below.
- In Transactions created from intermediate Production Operations, the Work In Progress Account will be taken from the Item Groups to which the component Items belong (if you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting in the Stock module) or from this setting. In the Transaction created from the final Production Operation, the Work In Progress Account will be taken from the Item Group to which the Output Item belongs (if you are using the Use Item Groups for Cost Accounts option) or from this setting.
- Generate Transaction
- If you are using Production Operations to build Productions in stages, use these options to specify whether you want separate Nominal Ledger Transactions to be created from each Production Operation, or a single final Transaction to be created from the Production. The first option allows you to record the value of each Production Operation in the Nominal Ledger in the Work In Progress Account (specified above).
- If you choose the Production Operation option, the sequence in which you Finish each Production Operation becomes significant. In particular, the Transaction from the final Production Operation, which debits the value of the final Item to the Stock Account and credits this value to the Work In Progress Account, may not be correct if there are earlier Operations in the sequence that you have not yet Finished. Therefore, if you choose this option, it is recommended that you also use the Complete Sequence Before Next One option in the Production Settings setting. This will ensure that you mark the Operations as Finished in the correct order.
- Note that stock levels of components will always be reduced and those of final Items will always be increased from Production Operations. If you choose the Production option, therefore, there may be a difference between the stock valuation in the Stock List report and in the Nominal Ledger.
- If you choose the Production option, you should also allow Transactions to be created from Productions in the Sub Systems setting in the Nominal Ledger and in the Number Series - Productions setting. If you choose the Production Operation option, you should again allow Transactions to be created from Productions in the Sub Systems setting (the Productions option in this setting applies to both Productions and Production Operations) and in the Number Series - Production Operations setting.
- This option only applies to Productions that will be built in stages (Productions with Routings). Productions without Routings will always generate Nominal Ledger Transactions (subject to the Sub Systems and the Number Series - Productions settings).
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