Greetings. Is there any way to credit a Liabilities account in the New Production Order?
Please explain more. What are you trying to do? A production order involves expenses.
Okay, I will describe my scenario exactly. My business is jewelry retail. We buy half manufactured jewelry consisting only of gold (without diamonds) and give it to a Diamond selling office and they set Diamonds to those pieces and return them back as finished goods. So it can be thought as a production order process. Bill of material is only half manufactured jewelry. Since I do not own diamonds I have to enter it as a non-inventory cost, as an expense. But it would be more suitable if that cost is credited to Accounts payable because I owe Diamond office that amount.
P.S I don’t know if that makes a perfect sense.
You make sense but it not a correct process.
What you are trying to do is enter the Suppliers (Diamonds Office) Purchase Invoice via the Production Order’s Non-inventory cost, which is wrong accounting.
To assist further, when you buy the half manufactured jewellery do you enter them as individual inventory items or are they grouped into inventory items - depending on how you manage your inventory will determine how you enter the Diamond Office purchase invoices.
Brucanna, thanks for your reply.
I have created custom control accounts for Diamonds, Half-manufactured gold and finished jewellery.
I am guessing that these are Inventory Item custom control account, if yes
When purchasing half-manufactured gold how do you record those purchases ?
E.g. If you buy rings, bracelets and brooches, do you record all the rings together or are they group by type or as individual items…
Similarly for diamonds, how do you record those purchases ?
Without knowing your actual workflow, that is, how you currently process the purchase invoices it is to difficult to advise on a solution.
Perhaps you could post a screen shot of each type of purchase invoice to illustrate your processing (just the Account Line section showing Inventory Item + Account) .
I have decided to exclude the manufacturing process and directly input finished products to inventory. Thank you for assistance @Brucanna