Saturday, December 19, 2009

Microsoft Dynamics GP Manufacturing Accounts

Dynamics GP Manufacturing has series of modules. If you are planning to implement Dynamics GP Manufacturing  series you need to add additional accounts in your existing chart of accounts, so here is the detail about these accounts
For Manufacturing you need

1)    Additional 47 Accounts
2)    Five Sets
No
Type
No Of Accounts
Nature
1
Applied Accounts
8 Accounts
Balance Sheet
2
WIP Accounts
9 Accounts
Balance Sheet
3
Inventory Accounts
9 Accounts
Balance Sheet
4
Variance Accounts
9 Accounts
Income Statement
5
COGS Accounts
9 Accounts
Income Statement

3)    On Misc Set
No
Type
No Of Accounts
Nature
1
Standard Cost Revaluation
1 Account
Balance Sheet
2
Floor Stock Expense
1 Account
Income Statement
3
Rounding OFF Difference
1 Account
Income Statement
All accounts mentioned above will be setup in the following cards/setups

1.    Inventory Item Card
2.    Machine Card
3.    Labor Card
4.    Manufacturing Setup
Here is the details for each setup/card

1.    Inventory Item Card ( Cards >> Inventory >> Item  >> Accounts [Item Account & Item Costing Accounts] )
Account Number
Details
Inventory





Normally required accounts
         (Item Accounts, Front Window)
Inventory Offset
Cost of Goods Sold
Sales
Markdowns
Sales Returns
In Use
In Service
Damaged
Variance
Drop Ship Items
Purchase Price Variance
Unrealized Purchase Price Var.
Inventory Returns
Assembly Variance
Standard Cost Revaluation
Will be used if you have inventory items on Periodic valuation method.

Overhead costs for standard cost components are applied to the applied accounts.
Applied – Material Fixed Over Head
Applied – Material Variable Over Head
Inventory – Material. Fixed Overheads
Required Only If Your Items Are Having Valuation Methods “Periodic

Inventory – Material Variable Overheads
Inventory – Labor
Inventory – Labor Fixed Overheads
Inventory – Labor Variable overheads
Inventory – Machine
Inventory – Machine Fixed Overheads
Inventory – Machine Variable overheads
Variance – Material

Difference between actual cost & standard cost for each cost buckets are applied to variance accounts.
Variance – Material. Fixed Overheads
Variance – Material Variable Overheads
Variance – Labor
Variance – Labor Fixed Overheads
Variance – Labor Variable overheads
Variance – Machine
Variance – Machine Fixed Overheads
Variance – Machine Variable overheads
WIP -  Material
Required For All items
WIP – Material. Fixed Overheads
Only Used With “Periodic” Valuation Method Items
WIP – Material Variable Overheads
WIP – Labor
Required For All items

Costs for materials and labor and machine time, plus their associated overhead amounts, are applied to work in process (WIP) accounts when they are designated for a specific manufacturing order.

WIP – Labor Fixed Overheads
WIP – Labor Variable overheads
WIP – Machine
WIP – Machine Fixed Overheads
WIP – Machine Variable overheads
CoGS -  Material
Required Only If Your Items Are Having Valuation Methods “Periodic

CoGS – Material. Fixed Overheads
CoGS – Material Variable Overheads
CoGS – Labor
CoGS – Labor Fixed Overheads
CoGS – Labor Variable overheads
CoGS – Machine
CoGS – Machine Fixed Overheads
CoGs – Machine Variable overheads





































2.    Labor Card ( Cards >> Manufacturing >> Labor )
Account Number
Details
Labor – Applied
Required no matter which valuation method you are using in Inventory.
Liability Type Accounts, These will be replacing the liabilities of labor expense such as salaries & benefits etc.
Labor Fixed Overheads  Applied
Labor Variable overheads  Applied






3.    Machine Card ( Cards >> Manufacturing >> Machines )
Account Number
Details
Machine –  Applied
Required no matter which valuation method you are using in Inventory
Liability Type Accounts BS, These will be replacements of such expenses Machine Rentals, Electricity, depreciation etc
Machine –  Fixed Overheads  Applied
Machine –  Variable overheads  Applied







4.    Manufacturing Setup
Microsoft Dynamics GP menu >> Tools >> Setup >> Manufacturing >> System Defaults >> Manufacturing Orders
Microsoft Dynamics GP menu >> Tools >> Setup >> Manufacturing >> System Defaults >> Costing

Account Number
Details
Floor Stock Expense Account
Will be used only if you are ticking the items as floor stock.
Rounding Off Difference Account
This is used when there is a need of adjusting the round off difference in term of digital accuracy resultant from conversion between Currency decimal with Manufacturing cost factors decimal places such as labor & Machine & BOM.







This is all regarding Manufacturing accounts, in my next post I will highlight Dynamics GP manufacturing accounting transactions.

3 comments:

  1. Good Job Done.
    Thanks, and go ahead.
    Najam

    ReplyDelete
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