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Journal Entries of manufactured product are incorrect

on 9/18/13, 11:17 AM 2,458 views

I had created two products, A and B. The cost of A is calculated by average cost. Product A could be sold directly and also used in manufacturing of Product B , for which i have created BOM. Now, whenever I manufacture product B, Its manufacturing cost is coming as zero though in stock I can see A has been reduced.

Also, due to real-time inventory valuation, for product A, COGS is debited which should not be there because I haven't sold A.

Kindly help.

Other setting:

Using Real Time inventory method

What is the cost price of product B on the product form view?

Bista Solutions US, Ray Carnes
on 9/19/13, 8:59 PM
Ray Carnes
On 9/19/13, 9:01 PM

COGS will be debited when the item is delivered, unless you have installed the Anglo Saxon module in which case it will be debited when the Sales Invoice is validated.

I suggest you watch (or review the slides) "US ACCOUNTING – OPENERP V7.0" to understand how to setup OpenERP properly to track manufacturing costs. The same principles work in any country, although Anglo Saxon isn't relevant for all countries.


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Asked: 9/18/13, 11:17 AM
Seen: 2458 times
Last updated: 8/22/16, 1:50 AM