Question about production orders and material costs

1

Hey lubos,

Good Day!

I have come across an issue and that is when i add raw material inventory items under bill of material in a production order it does affects the raw material quantity movement but it does not hit the direct material cost in profit & loss.
how can we do that through production orders the direct material cost is added up in profit & loss through bill of material.

can you please help me out with that.

po1
po1595×910 67.3 KB

po2
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can you please give me a solution how can we hit direct material cost in profit & loss of raw material items through production orders?

Regards:
Ubaid.

2

It is not possible to answer your question definitively without seeing more information about your chart of accounts. But in general, material costs from a production order are not going to show up in an expense account. They are simply transferred from the input inventory items to the finished good item within Inventory on hand on your balance sheet. When you sell the finished good, its costs appear in Inventory - cost. (You seem to have deleted or renamed that account.)