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Former Member

Production Journal Entry

I can't understand those Journal entries When I Issue a production order :

Dr.Inventory Work In Progress

Cr.Inventory Finished Goods

And why it get reversed when I Receipt it from production :

Dr.Inventory Finished Goods

Cr.Inventory Work In Progress

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2 Answers

  • Aug 07, 2016 at 12:41 PM

    Hi

    Check G/L mapping for issue items.

    When doing production issue:

    WIP Account Debit

    RM/SFG Inventory Account Credit

    When doing production receipt:

    FG Inventory Account Debit

    WIP Account Credit



    End of the day WIP account should be 0. If production not complete only the WIP account will appear that means stock is work in progress stage.



    Regards

    Halik

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    Former Member
    Aug 07, 2016 at 02:47 PM

    For Production Issues, the below postings will happen

    Raw Materials CR

    Work In Progress DR

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