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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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