Microsoft Dynamics GP (Archived)

Actual Raw Material Usage during production

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Posted on by Benson

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Hi Richard,

Thank you for your advise..

I have better understanding on the GP Manufacturing process.

For capturing "Actual raw material usage during production",

when we issue a production order & input the actual quantity of raw material usage which could be bit difference from BOM, & from which come up with MUV

Question

Where is the Cost of Actual Raw Material usage posted into?

Please be excused if I have kept repeating the same question..

Thank you

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Mahmoud Saadi 32,738 on at

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RE: Actual Raw Material Usage during production

All the costs including the Overhead and actual raw materials are recorded to the manufacturing offset account (Work In Progress) Account, in which the actual cost of the finished goods are to be transferred into to manufactured FG.

It's worth to mention that any variance remaining in the manufacturing offset account (WIP account ) will be closed in the variance account. As illustrated below;

Before Closing the MO;

Account Debit Credit

Inventory /Raw Materials 0 10

Inventory/ Semi Finished Goods 0 2

Overhead 0 1

WIP Account 13 0

Once the MO is closed, the extended cost of the manufactured FG is (13), and the journal entry is shown below;

Account Debit Credit

Inventory /Finished Goods 13 0

WIP Account 0 13
Frank Hamelly | MVP... 4,029 Super User 2024 Season 2 on at

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RE: Actual Raw Material Usage during production

Actual material is posted to WIP (Work in Process) account and remains there until the MFG order is received and/or closed, at which time all costs associated with the MO are transferred to your Finished Goods account (or whatever account you've assigned to receive those costs).