Business central add columnBusiness central general business posting groupDimension combinations business centralAllocation journal in D365Journal entries for inventory transactions - AccountingTools
文章推薦指數： 80 %
There are many inventory journal entries that can be used to ... other types of production-related expenses that are allocated to inventory, ... AccountingTools CPECourses CPECourses CPELogIn HowtoTakeaCourse StateCPERequirements Books CollegeTextbooks AccountingBooks FinanceBooks OperationsBooks CPAExamStudyGuides Articles Articles TopicsIndex SiteArchive Podcast AccountingBestPractices PodcastIndex PodcastSummary Dictionary FAQs About About Contact EnvironmentalCommitment Home AccountingTools CPECourses/CPECoursesCPELogInHowtoTakeaCourseStateCPERequirements Books/CollegeTextbooksAccountingBooksFinanceBooksOperationsBooksCPAExamStudyGuides Articles/ArticlesTopicsIndexSiteArchive Podcast/AccountingBestPracticesPodcastIndexPodcastSummary Dictionary/ FAQs/ About/AboutContactEnvironmentalCommitment Home/ AccountingTools AccountingCPECourses&Books Articles AccountingTools CPECourses/CPECoursesCPELogInHowtoTakeaCourseStateCPERequirements Books/CollegeTextbooksAccountingBooksFinanceBooksOperationsBooksCPAExamStudyGuides Articles/ArticlesTopicsIndexSiteArchive Podcast/AccountingBestPracticesPodcastIndexPodcastSummary Dictionary/ FAQs/ About/AboutContactEnvironmentalCommitment Home/ RelatedCoursesAccountingforInventoryHowtoAuditInventory Thereareanumberofinventoryjournalentriesthatcanbeusedtodocumentinventorytransactions.Inamodern,computerizedinventorytrackingsystem,thesystemgeneratesmostofthesetransactionsforyou,sotheprecisenatureofthejournalentriesisnotnecessarilyvisible.Nonetheless,youmayfindaneedforsomeofthefollowingentriesfromtimetotime,tobecreatedasmanualjournalentriesintheaccountingsystem.JournalEntryforanInventoryPurchaseThisistheinitialinventorypurchase,whichisroutedthroughtheaccountspayablesystem.Thedebitwillbetoeithertherawmaterialsinventoryorthemerchandiseinventoryaccount,dependingonthenatureofthegoodspurchased.Theentryis: Debit Credit Rawmaterialsinventory xxx Merchandiseinventory xxx Accountspayable xxx RecordIndirectProductionCostsinOverhead Thereareothertypesofproduction-relatedexpensesthatareallocatedtoinventory,suchasrent,utilities,andsuppliesforthemanufacturingoperation.Theseexpenditurestypicallybeginasaccountspayableandareallocatedtoanoverheadcostpool,fromwhichtheyarethenallocatedtoinventoryandthecostofgoodssold.Theallocationtoacostpoolmayoccurlater,butwewillassumeitoccursatthetimeofinitialaccountspayablerecordation,withthisentry: Debit Credit Overheadcostpool xxx Accountspayable xxx RecordProductionLaborinOverhead Varioustypesofproductionlabor,suchasproductionmanagementsalariesandmaterialsmanagementwages,arealsoroutedthroughanoverheadcostpool,fromwhichtheyarelaterallocatedtoinventory.Theentryforthisisusuallyashiftingofthewagesexpenseintoacostpool,withthisentry: Debit Credit Overheadcostpool xxx Wagesexpense xxx MoveRawMaterialstoWorkinProcess Ifyouareoperatingaproductionfacility,thenthewarehousestaffwillpickrawmaterialsfromstockandshiftittotheproductionfloor,possiblybyjobnumber.Thiscallsforanotherjournalentrytoofficiallyshiftthegoodsintothework-in-processaccount,whichisshownbelow.Iftheproductionprocessisshort,itmaybeeasiertoshiftthecostofrawmaterialsstraightintothefinishedgoodsaccount,ratherthanthework-in-processaccount. Debit Credit Work-in-processinventory xxx Rawmaterialsinventory xxx RecordInventoryScrapandSpoilage Therewillinevitablybeacertainamountofscrapandspoilagearisingfromaproductionprocess,whichisnormallyrecordedintheoverheadcostpoolandthenallocatedtoinventory.Iftheseamountsareabnormal,thenyouwouldinsteadchargetheabnormalamounttothecostofgoodssold(sothattheyarenotcarriedasanasset). Theentryfortheformersituationis: Debit Credit Overheadcostpool xxx Work-in-processinventory xxx RecordFinishedGoods Oncetheproductionfacilityhasconvertedthework-in-processintocompletedgoods,youthenshiftthecostofthesematerialsintothefinishedgoodsaccountwiththefollowingentry: Debit Credit Finishedgoodsinventory xxx Work-in-processinventory xxx AllocateOverhead Attheendofeachreportingperiod,allocatethefullamountofcostsintheoverheadcostpooltowork-in-processinventory,finishedgoodsinventory,andthecostofgoodssold,usuallybasedontheirrelativeproportionsofcostorsomeotherreadilysupportablemeasurement.Thejournalentryis: Debit Credit Work-in-processinventory xxx Finishedgoodsinventory xxx Costofgoodssold xxx Overheadcostpool xxx SaleTransactionEntry Oncethereisasaleofgoodsfromfinishedgoods,chargethecostofthefinishedgoodssoldtothecostofgoodssoldexpenseaccount,therebytransferringthecostoftheinventoryfromthebalancesheet(whereitwasanasset)totheincomestatement(whereitisanexpense).Theentryis: Debit Credit Costofgoodssoldexpense xxx Finishedgoodsinventory xxx Thereisalsoaseparateentryforthesaletransaction,inwhichyourecordasaleandanoffsettingincreaseinaccountsreceivableorcash.Asaletransactionshouldberecognizedinthesamereportingperiodastherelatedcostofgoodssoldtransaction,sothatthefullextentofasaletransactionisrecognizedatonce. Thatconcludesthejournalentriesforthebasictransferofinventoryintothemanufacturingprocessandouttothecustomerasasale.Therearealsotwospecialsituationsthatariseperiodically,whichareadjustmentsforobsoleteinventoryandforthelowerofcostormarketrule. ObsoleteInventoryEntry Thereislikelytobesomeamountofobsoleteinventoryarisingonanongoingbasis,soitisbesttocontinuallychargeasmallamounttothecostofgoodssoldandsetupareserveaccountforobsoleteinventory,usingthefollowingentry: Debit Credit Costofgoodssoldexpense xxx Obsolescencereserve xxx Then,whenyoulocateobsoleteinventoryanddesignateitassuch,youcredittherelevantinventoryaccountanddebittheobsolescencereserveaccount.Thisapproachchargesthecostofobsolescencetoexpenseinsmallincrementsoveralongperiodoftime,ratherthaninlargeamountsonlywhenobsoleteinventoryisdiscovered. LowerofCostorMarketEntry Youhavetoperiodicallytestinventorytoseeifthemarketcostofanyinventoryitemislowerthanitscostunderthelowerofcostormarketrule.Asaresult,youmayneedtoreducethecarryingamountoftheinventoryitemtoitsmarketvalue,andchargethelossoninventoryvaluationexpenseforthedecreaseinrecordedcostoftheinventory.Theassociatedentryis: Debit Credit Lossoninventoryvaluation xxx Rawmaterialsinventory xxx Work-in-processinventory xxx Finishedgoodsinventory xxx Aninterestingpointaboutinventoryjournalentriesisthattheyarerarelyintendedtobereversingentries(thatis,whichautomaticallyreversethemselvesinthenextaccountingperiod).Instead,theentriesareusuallyone-timeevents. Additionalentriesmaybeneededbesidestheonesnotedhere,dependinguponthenatureofacompany'sproductionsystemandthegoodsbeingproducedandsold. Auditriskmodeldefinition Indirectcostsdefinition CPECourses/CPECoursesCPELogInHowtoTakeaCourseStateCPERequirements Books/CollegeTextbooksAccountingBooksFinanceBooksOperationsBooksCPAExamStudyGuides Articles/ArticlesTopicsIndexSiteArchive Podcast/AccountingBestPracticesPodcastIndexPodcastSummary Dictionary/ FAQs/ About/AboutContactEnvironmentalCommitment Home/ AccountingTools CollegeTextbooksAccountingBooksFinanceBooksOperationsBooksCPAExamStudyGuides Sendusyoure-mailaddresstoreceivemonthlycoursediscounts * Thankyou! Copyright2022
延伸文章資訊
- 131. Prepare Journal Entries for a Process Costing System
The example that follows illustrates how the journal entries reflect the process costing system ....
- 2Ledger allocation rules - Finance | Dynamics 365 - Microsoft ...
Ledger allocation rules are used to automatically calculate and generate allocation journals and ...
- 3Understanding the General Ledger Allocation Feature - Eci ...
Before you begin using the G/L Allocation feature, it helps to understand how the account informa...
- 4Examples of Cross-Ledger Allocations - Oracle Help Center
The following scenario illustrates generating balancing journal entries as well as intercompany t...
- 5Financial Edge Allocation Management Guide - Blackbaud
For example, you can use Allocation Management to allocate the expense of a phone bill ... create...
