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.