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I have a series of products that are set to "Produce". The costing method is set to Standard Price and the BOM with routing is created. The CoA has a manufacturing account (I've put it in the P&L under Cost of Sales) that will capture all the production costs which will be offset by the difference between the Standard Price and the Raw Material cost on the Manufacturing order. So I have: Standard Price ($100) = Raw Material Cost ($20) + Overhead Recovery ($80) When the Manufacturing Order is complete I should have: 1. A balance sheet item of Raw Material Stock reduced by $20 2. A balance sheet item of Finished Stock increased by $100 3. A P&L item of overhead reduced by $80 So to achieve these results I assume I need to set the Account Stock Properties (under product or category). My logic is that on the Raw Material I should set the Stock Output Account to reduce the Raw Material stock account, then on the Finished Stock I should set the Stock Input Account to increase the Finished Stock account but how do I allocate the difference of $80 to recovery my overheads?
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|Asked: 7/12/13, 7:53 AM|
|Seen: 1510 times|
|Last updated: 5/10/15, 8:40 AM|