Mrp account stock moves

Question

When i create an MRP record and finish it, the stock moves are created along with the account moves. I get a journal entry with a credit to stock in hand and a debit to stock delivered but not billed. This is for the BOM materials. Should there not be another stock move made to remove the entry from stock delivered but not billed account and moved to the cogs account? How do i get this other move to be created?
It is the same on the finished products going back into inventory. I get a debit to s

Sudhir Arya (ERP Harbor Consulting Services) · Accepted Answer

For the materials, accounting entries would have been created when you had purchased it and now you are using the products as a material in the MRP, system is creating reverse entry.
Same goes for the finished product. The other account move will be created when you will deliver the product (Delivery Order).

Roland Jeffries · Answer

I sort of understand what you are saying. Here is the journal entries i see. It is when i send it to production that it pulls it out of inventory which is good and then puts it in inventory delivered but not billed. There should be an entry after that that puts it into an COGS account? Or i am wrong there? And after the new product produced is put into inventory, there is an entry that it is inventory received but not billed. Should there not be an entry after that? Once it is sold it goes to in

InventoryReceived	Debit	Credit
Inventory received not billed		100
Inventory In Hand	100

Bill created:
Inventory Received not billed	100
Vendor account		100

Payment:
Vendor account	100
Bank		100

Sent to production:
Inventory in Hand		100
Inventory delivered not billed	100

This question has been flagged

Enjoying the discussion? Don't just read, join in!