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PO

Former Member
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Hi ,

How could i show the consumption of raw material at the time of issue for production in profit and loss report.

Regards

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hi,

In general Accounting, we need to consider closing stock as additional information. I mean closing stock will not be a part of trial balance, so closing stock will be there at credit side of P&L account, and asset side of B/S. So the COGS=Opening Stock+Purchasing-Closing Stock. But in ERP we do not post any entry to purchase account, first entry will be "Stock" debit & "Vendor" credit, while issueing material to plant second entry will be posted which will be "COGS" debit and "Stock" credit. So there is no need of calculate COGS because it is already routed through stock account. Hence we are using only COGS in P&L account, and no need of opening/Closing stock & purchasing in P&L account.

Regards,

Rupinder S Sandhu

Former Member
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Hi Rupinder.....

Its not possible to calculate the issue for production in P&L statement as its a part of your assets. You can only show when your complete production will be over and status closed.......

Regards,

JesperB1
Advisor
Advisor
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Hi Rupinder,

In a continuous stock system the P&L is not affected when issuing goods for production. Both WIP and Stock account should be asset accounts.

Hope it helps,

Jesper