Hi, We are a Clothing manufacturing company, trying to implement Manager, I found one issue regarding If we add non inventory cost in Production run, as it effect Inventory costing and expense account Debit Inventory Credit Expense If it is possible to affect liability rather than Expense accou…

This is a great question, because it brings up several accounting issues at once. First, the matching principle requires that the expense of stitching be recognized during the period when the finished inventory item is produced. In other words, when the article of clothing is manufactured (via a pr…

We have a team of around 15 tailor on our payroll to whom we are paying monthly of the work done, but we sell in current month. If we make payslips of 15 employees every day this is hectic work, but we want to know the product average cost to sell in a profit. If we make payslip monthly it will be…

Also keep in mind that we are increasing day by day so may be next month we will have 15 more tailor.

[image] Mubeen_Hussain1: If we make payslips of 15 employees every day this is hectic work I did not mean to suggest you must do this. I only meant that, if you did, your position and performance would be up to date every day instead of only at the end of the month. What you are currently doi…

Thanks Alot Tut. I will continue doing Journal Entries every day. but if this can add, this will be good for us, but you guys know it better how to make manager usable for all. Thank Again

Of course, you can do as you wish. But I do not see where a journal entry accomplishes anything, except to possibly distort your records. Can you provide an example? What journal entry would you make?

[image] This will make stiching cost ledger “0” Production order will do, Inventory Debit Stiching Cost Credit

All this journal entry does is substitute for a payslip. Assuming the payslip earnings item for stitching was set up to post to Stitching cost, the payslip would have debited Stitching cost and credited Employee clearing account for Tailor. If you are making these journal entries daily, you might as…

@Mubeen_Hussain1 - there maybe an alternate process which doesn’t require daily Journal. But first can you advise is the stitching cost the same per piece, or do you have different stitching cost depending on the type of piece. With this information I could model you an alternate solution to doing…

It depends on the type of product they are stitching for Eg Dress shirt is 400 per Shirt, For Suits it is 2500.

Non-Inventory Cost Liability account on production orders

Topic		Replies	Views
Production order	16	1484	January 18, 2023
Non-Inventory Items	7	2880	January 18, 2023
Under Production Orders	2	245	January 18, 2023
Non inventory items	11	1681	January 18, 2023
Non inventory cost into production	7	361	September 24, 2024

Non-Inventory Cost Liability account on production orders

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