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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / GL Entries when postin...
Small and medium business | Business Central, N...
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GL Entries when posting Direct Labour Costs

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Posted on by Gavin 2,341
Hi,
 
**Posting this again as it seems to have disappeared :( **
 
I've a relative newbie to the manufacturing module, and have been looking at it from a GL entries perspective.
 
I've noticed that in the Cronus demo set when I set a Work Centre with a direct cost and then post capacity entries this debits WIP and credits a COGS Labour code. (its get this from /Direct Cost Applied/ in the General Posting Setup)
 
The debit to the WIP account I understand, however shouldn't the credit go to a wages accrual on the balance sheet? If not, is it assumed you would at some point debit the COGS Labour code and credit a wages control account? (perhaps as part of posting a payroll journal)
 
I appreciate this is the Cronus demo set configuration, so if anyone can share their experience and knowledge when configuring this for a LIVE company I'd be grateful :)
 
Thanks
Gavin
 
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Dynamics 365 Business Central
  • Gavin Profile Picture
    Gavin 2,341 on at
    GL Entries when posting Direct Labour Costs
    Hi,
     
    Thanks very much for responding. Much appreciated.
     
    Those blogs show how the costing flows, which is great, however I'm specifically interested in which type of GL code get used when being setup.
     
    It seems Cronus is setup to use a COGS income account as the balancing account for WIP for Labour costs and I just thought this would be a wages accrual. I was therefore interested in what this is set on LIVE systems using manufacturing. 
     
    I suspect if it is a COGS account a manual journal is posted at some point reversing this (debiting) to a wages/payroll account.
     
    Thanks
    Gavin
  • gdrenteria Profile Picture
    gdrenteria 13,057 Most Valuable Professional on at
    GL Entries when posting Direct Labour Costs

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