Monday, December 21, 2009

Microsoft Dynamics GP Manufacturing – Accounting Transactions





In my previous post on Dynamics GP Manufacturing Accounts, I have explained about listing of standard accounts required to setup dynamics GP manufacturing. Extending the same topic here is the details about standard accounting entries generated from  Dynamics GP Manufacturing Series.


Background:
The setup option considered for the accounting transactions example consists the followings.
-      Machine & Labor Marked Auto Back flush
-       Inventory Items Using Average Perpetual

Summary:
There are three Main Transactions from manufacturing
1.       Component Transaction Entry ( Issuance Of Material )
2.       MO Receipts ( WIP )
3.       MO Receipts ( FG )

And One Additional Transaction
4.       MO Closing ( In Case Of Variance )

Details:
Here is the details about the above transaction types with respect to a standard process of MO

Step 1:   Bill Of Material Setup
-      No Accounting Transaction

Step 2:   Manufacturing Order Creation
-       No accounting transaction

Step 3:   Component Transaction Entry ( Issuance Of Material )
a)       Issuance Entry

Account
Debit
Credit
Inventory

--
Work In Process - WIP
--


b)       Reverse Issuance

Account
Debit
Credit
Inventory
--

Work In Process - WIP

--
                               

Step 3:   MO Receipt
a)    WIP For Machine & Labor

Account
Debit
Credit
WIP-Labor                    
--

WIP-Labor-FOH           
--

WIP-Labor-VOH           
--




Applied-Labor

--
Applied-Labor-FOH

--
Applied-Labor-VOH

--



WIP-Machine               
--

WIP-Machine-FOH      
--

WIP-Machine-VOH     
--




Applied-Machine

--
Applied-Machine - FOH

--
Applied-Machine - VOH

--

b)     FG Entry

Account
Debit
Credit
WIP-Labor                    
--
WIP-Labor-FOH           
--
WIP-Labor-VOH           
--
WIP-Machine               
--
WIP-Machine-FOH      
--
WIP-Machine-VOH     
--
WIP– Material

--
Inventory – Finished Good
--






Step 4:   MO Close ( In Case Of Variance)

Account
Debit
Credit
WIP-Material                
--
Variance– Material
---



In my coming posts, I will highlight the accounting transactions with other setup options as well.

Related Reference Links:

2 comments:

  1. Do you need to run MO Close if you never have variances?
    Or can the MO status remain as Complete?
    What would be th ebenefit of Closing MO's that are the status of complete? We do thousands of MO's a day.

    ReplyDelete
  2. Yes. MO Closing should be ran since only this way system will clean up the WIP else it will still shows them WIP ( even In & Out is matching).

    ReplyDelete