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Exact Globe   
 

Release 380: Production journalizing for France, Belgium and Italy

Background

Menu path

System/Settings/General ledger settings
Manufacturing/Entries/Production orders
Manufacturing/Entries/Issue
Manufacturing/Entries/Receipts production
Manufacturing/To be processed/Complete
Manufacturing/Statistics/Rejected
Manufacturing/Statistics/Waste

Background

The production journalizing practice in France, Belgium and Italy is different from the standard production journalization in Exact Globe.As such, a new production journalization method which meets the accounting practices/policies of these countries is essential.

What has been changed

In order to comply with the French, Belgium and Italy accounting policy in production order, a new method has been implemented in release 380. The production double entries will now be booked into different general ledgers (GL) instead of using the existing standard logic. In production order, the system will now refer to 'Cost of Goods Sold (COGS)' GL defined in the item maintenance. It will also refer to the 'Work in Progress (WIP)', 'WIP change' and 'Scrap' GL codes that were defined in the general ledger settings to generate the financial entries accordingly. Since the production journals for these legislations will now using COGS GL at item level, it is important to setup all the items data correctly with its respective item group.

The new production journalization method defines the COGS GL by items. Because of this, it is now possible to have different COGS GL codes for different items/item groups. Users can now have a better view of the total production cost per item groups in production order.

For example, to view the total cost for materials regardless of number of production orders, user can easily access the GL card to obtain the information.


 

With French, Belgium or Italy license, all the production GL in System/Settings/General ledger are hidden, except for Production WIP and Production scrap. A new GL Production WIP change is introduced for these legislations. All the respective applications for production processes should obtain the correct GL from item master and general ledger settings accordingly.

For Production: WIP GL code , the default GL account will obtain from the settings but system will allow the change of ledger in project master, just like the current logic.

For Production: WIP change GL code , system allows only Profit & Loss (P&L) ledgers.

For Production: Scrap GL code , the system will only accept Balance Sheet (BS) ledgers with neutral or stock type. When saving a new GL that is neutral type, the system will automatically save the type to stock.

The recoding logic for existing transactions upon changing of scrap GL ledger will remained the same.

Important: Existing customers should know that there is no batch-to-batch script to convert the uncompleted production order to map to this new logic. As such, users must ensure that all the outstanding production orders have to set to “Complete” status before upgrading to release 380 and make use of this new logic. Inconsistency will occur if users have open production orders with old logic, and then continue by using new logic at later stage.

Existing production journals method in Exact Globe

Production = no WIP
Issue Debit Credit
Materials Production cost Stock
Materials waste Production cost Stock
Hour item Realization Salary payment
Receipts Debit Credit
Finish goods Stock Production revenue
By-product Stock Production cost
Extra charges Production cost Stock
Extra issue Debit Credit
Materials (issue) Production cost Stock
Hours item (extra consumption) Realization Salary payment
Extra receipts Debit Credit
Finish goods (receipts) Stock Production revenue
By-product (receipts) Stock Production cost
Return Issue Debit Credit
Materials (returns) Stock Production cost
Hours item (correction) Salary payment Realization
Return receipts Debit Credit
Finish goods (returns) Production revenue Stock
By-product (returns) Production cost Stock
Complete Debit Credit
Materials Production result Production cost
Materials waste Production result Waste
Finish goods Production revenue Production result
Hours item Production result Production cost
Extra charges Production result Production cost
Scrap Debit Credit
Materials Production scrap Production cost
Finish goods Production scrap Stock
By-product Production scrap Stock

 


 

Production = WIP
Issue Debit Credit
Materials Production WIP Stock
Materials waste Production waste Stock
Hours item Production WIP Salary payment
Receipts Debit Credit
Finish goods Stock Production WIP
By-product Stock Production WIP
Extra charges Production WIP Stock
Extra issue Debit Credit
Materials (issue) Production WIP Stock
Hours item (extra consumption) Production WIP Salary payment
Extra receipts Debit Credit
Finish goods Stock Production WIP
By-product Stock Production WIP
Return issue Debit Credit
Materials (returns) Stock Production WIP
Hours item (correction) Salary payment Production WIP
Return receipts Debit Credit
Finish goods (returns) Production WIP Stock
By-product (returns) Production WIP Stock
Complete Debit Credit
Materials Production cost Production WIP
Production result Production cost
Materials waste Production result Production waste
Finish goods Production WIP Production revenue
Production revenue Production result
By-product Production WIP Production cost
Production cost Production result
Hours item Salary payment Production WIP
Production result Salary payment
Extra charges Production cost Production WIP
Production result Production cost
Scrap Debit Credit
Materials Production scrap Production WIP
Finish goods Production scrap Stock
By-product Production scrap Stock

 


New production journalizing for France, Belgium and Italy

 

Production = NO WIP
Issue Debit Credit
Materials COGS Stock
Materials waste COGS Stock
Hours item Realization Salary payment
Receipts Debit Credit
Finish goods Stock COGS
By-product Stock COGS
Extra charges COGS Stock
Extra issue Debit Credit
Materials (issue) COGS Stock
Hours item (extra consumption) Realization Salary payment
Extra receipts Debit Credit
Finish goods (receipts) Stock COGS
By-production (receipts) Stock COGS
Return issue Debit Credit
Materials (returns) Stock COGS
Hours item (correction) Salary payment Realization
Return receipts Debit Credit
Finish goods (returns) COGS Stock
By-product (returns) COGS Stock
Complete Debit Credit
Materials - -
Materials waste - -
Finish goods - -
Hours item - -
Extra charges - -
Scrap Debit Credit
Materials Production scrap COGS
Finish goods Production scrap COGS
COGS Stock
By-product Production scrap COGS
COGS Stock

 

Production = WIP
Issue Debit Credit
Materials Production WIP Production WIP change
COGS Stock
Materials waste Production WIP Production WIP change
COGS Stock
Hours item Production WIP Production WIP change
Realization Salary payment
Receipts Debit Credit
Finish goods Stock COGS
By-product Stock COGS
Extra charges Production WIP Production WIP change
COGS Stock
Extra issue Debit Credit
Materials (issue) Production WIP Production WIP change
COGS Stock
Hours item (extra consumption) Production WIP Production WIP change
Realization Salary payment
Extra receipts Debit Credit
Finish goods Stock COGS
By-product Stock COGS
Return issue Debit Credit
Materials (returns) Production WIP change Production WIP
Hours item (correction) Production WIP change Production WIP
Return receipts Debit Credit
Finish good (returns) COGS Stock
By-product (returns) COGS Stock
Complete Debit Credit
Materials - -
Materials waste - -
Finish goods Production WIP change Production WIP
By-product - -
Hours item - -
Extra charges - -
Scrap Debit Credit
Materials Production scrap COGS
Finish goods Production scrap COGS
COGS Stock

 

 

 

     
 Main Category: Support Product Know How  Document Type: Release notes detail
 Category: Release Notes  Security  level: All - 0
 Sub category: Details  Document ID: 14.680.817
 Assortment:  Date: 09-05-2017
 Release: 380  Attachment:
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