GR against production order accounting entry

[Former Member]

Looking for help regarding offset account hit at the time of GR of Finished production

Let see the entries

When GI Against production order for material code x000000091 by 261

6110010 CONSUMPTION - XXX 10,000.00 Dr.

3430020 Stock account 10,000.00- cr.

When GR of Finished good Concrete by 101

3450010 FINISHED GOODS 19,990.00 Dr.

6000010 Production offset 19,990.00- Cr.

just we want to know how does production offset be cleared, even it is showing in our trail Balance as Cr.

please help how does production offset works.

[Former Member]

Hi,

Please consult your FI-Co consultant.

The setup in OBYC needs to be checked & corrected. The G/L account specified seems to be incorrect. The output from production should be credited to the Production Output account & not Production Offset account.

The entries should be:

Cr. Production Output A/c

Dr. Finished Goods

Hope it clarifies.

Regards,

Vivek