Production order issue when material is insufficient

[lubos]

I know what you mean. You think it’s unfair to hold the value of Y and Z on balance sheet because of X.

Here is the topic which has introduced production in progress control account.

Added "Insufficent Qty" concept to production orders

Production orders and negative inventory has been always problematic. I’ve introduced production stages to address some issues but one issue remained unresolved. The latest version (20.7.45) is addressing this. Consider the following example: Let’s start with two inventory items Leather (starting qty zero) Handbag (starting qty zero) Customer buys a handbag on 24/06/2020 which is made to order for $100. We record the sale on the day. [image] Before we can deliver handbag to customer, we n…

There is a comment by @Mule1 who proposed that if we are holding back COGS entry, we should also hold back Sales entry (e.g. have something like Sales in Progress). This would allow for both COGS and Sale enter profit & loss statement at the same time.

Added "Insufficent Qty" concept to production orders

@lubos My thoughts on this development would be on the side of sales, be it cash or credit. The representation of sold units in the P&L would inflate the gross profit as a result of the cogs being zero. This would reflect a false gross profit in the shot run. You could introduce a control account for sales and maybe name it sales in progress. The sale only to be completed when the production order is complete. Meanwhile the invoice would been issued to client.