One moment please...
 
Exact Globe   
 

Release 370: Production journalizing for Poland

Batch 325

Background

Prior to Release 370 in production order upon journalizing financial entries system will use standard method for all the countries, every record will book into respective production general ledger (GL) account predefine in manufacturing settings. How system generates financial entries during various production processes has been working perfectly, but this is not practical in Poland. Due to unique accounting practice, the current journalizing of financial entries upon production issue, receipts and completion are not permitted in Polish law.

 

What has been changed
Menu path
Manufacturing/Entries/Production orders
Manufacturing/Entries/Issue
Manufacturing/Entries/Receipts production
Manufacturing/To be processed/Complete
 

A new method to journalize financial entries will be available for Poland legislation; two (2) additional GL accounts (stock change and stock coverage) will be introduced in item master and item group. Major area will be affected are production issue, receipts and completing a production order. For production order with Work In Progress (WIP) or without WIP will also be different how system journalizes those entries, apart from adjusting the standard way of journalizing entries system will also creates additional entries to book into stock change and stock coverage accordingly.

 

All the manufacturing reports and overview has been adjusted to support this new functionality and this new method only applies to actual records, as for budget records it will remain unchanged.

 

Prerequisite

 

Since this new method will creates additional GL so it is important for users to set up this mandatory GL in each of the item to be used in the production. During production issue, receipts, extra issue or extra receipts, if stock change and coverage GL accounts are not defined, message will be prompted and this particular production order will not be able to proceed.

Item group

 

Item maintenance

 

In order for system to book correct entry according to new method users must set up corresponding GL account, namely stock change and stock coverage. This two (2) GL accounts will be available in item group to allow users predefine desire GL account and upon create new item to link with this item group, these two (2) GL accounts will automatically linked. Various validations also in placed to prevent data inconsistency and system will prompt warning message when such situation encountered.
 

GL account Stock change Stock coverage
Profit & Loss (P&L) GL account v v
Balance Sheet (BS) GL account v v
Bank GL account X X
Creditor GL account X X
Debtor GL account X X
Stock GL account X X
Notes
  • Same GL account for both stock change and stock coverage are permitted.

Change to production GL accounts in used

Change to permitted GL account


System will not perform any recode when changing of stock change and stock coverage GL accounts, warning message will be shown to inform users by changing both GL accounts will causes all the existing production orders not be able to view in most of the reports and overview.

Journalizing financial entries in production order - Original (No-WIP)

No. Process/Action Items Debit GL account Credit GL account
1 Issue/Realize of items. part item Production cost Stock
part item waste Production waste Stock
labor hour Production cost Salary payment
machine hour Production cost Salary payment
2 Receive of make item and by product:
- Extra charges will be created
make item Stock Production revenue
by-product Stock Production cost
extra charges Production cost Stock
3 Complete the PrO. make item Production revenue Production result
buy-product Production revenue Production cost
part item Production result Production cost
part item waste Production result Production waste
labor hour Production result Production cost
machine hour Production result Production cost
No. Extra issue (Return) Budget/Actual Debit GL account Credit GL account
1 (Make item) Budget Production revenue Stock
Actual Production revenue Stock
2 Part item Budget Production cost Stock
Actual Production cost Stock
3 Labor hour Budget Production cost Salary payment
Actual Production cost Salary payment
4 Machine hour Budget Production cost Salary payment
Actual Production cost Salary payment
5 (By-product) Budget Production cost Stock
Actual Production cost Stock
No. Extra receipts (Return)   Debit GL account Credit GL account
1 Make item Budget Stock Production revenue
Actual Stock Production revenue
2 (Part item) Budget Stock Production cost
Actual Stock Production cost
3 (Labor hour) Budget Salary payment Production cost
Actual Salary payment Production cost
4 (Machine hour) Budget Salary payment Production cost
Actual Salary payment Production cost
5 By-product Budget Stock Production cost
Actual Stock Production cost

Using production-WIP method is similar to No-WIP method except all the cost, revenue will be booked into production WIP GL account initially and upon completion all the entries made to WIP will be reversed to respective GL accounts accordingly.

Journalizing financial entries in production order - Poland (No-WIP)

No. Process/Action Items Debit GL account Credit GL account
1 Issue/Realize of BOM items. part item Stock change Stock
Production cost Stock coverage
part item waste Stock change Stock
Production waste Stock coverage
labor hour Stock change Salary payment
Production cost Stock coverage
machine hour Stock change Salary payment
Production cost Stock coverage
2 Receive of make item and by product:
- Extra charges will be created
make item Stock Stock change
by-product Stock Stock change
extra charges Production cost Stock coverage
3 Complete the PrO. No entries will be created.
No. Extra issue (Return) Budget/Actual Debit GL account Credit GL account
1 (Make item) Budget Production revenue Stock
Actual Stock change Stock
2 Part item Budget Production cost Stock
Actual Stock change Stock
Production cost Stock coverage
3 Labor hour Budget Production cost Salary payment
Actual Stock change Salary payment
Production cost Stock coverage
4 Machine hour Budget Production cost Salary payment
Actual Stock change Salary payment
Production cost Stock coverage
5 (By-product) Budget Production cost Stock
Actual Stock change Stock
No. Extra receipts (Return)   Debit GL account Credit GL account
1 Make item Budget Stock Production revenue
Actual Stock Stock change
2 (Part item) Budget Stock Production cost
Actual Stock Stock change
Stock coverage Production cost
3 (Labor hour) Budget Salary payment Production cost
Actual Salary payment Stock change
Stock coverage Production cost
4 (Machine hour) Budget Salary payment Production cost
Actual Salary payment Stock change
Stock coverage Production cost
5 By-product Budget Stock Production cost
Actual Stock Stock change
No. Scrap Budget/Actual Debit GL account Credit GL account
1 Make item Actual Production scrap Stock
2 Part item Actual Production scrap Stock change
3 By-production actual Production scrap Stock

Journalizing financial entries in production order - Poland (Production-WIP)

No. Process/Action Items Debit GL account Credit GL account
1 Issue/Realize of BOM items. part item Stock change Stock
Production WIP Stock coverage
part item waste Stock change Stock
Production waste Stock coverage
labor hour Stock change Salary payment
Production WIP Stock coverage
machine hour Stock change Salary payment
Production WIP Stock coverage
2 Receive of make item and by product:
- Extra charges will be created
make item Stock Stock change
by-product Stock Stock change
extra charges Production WIP Stock coverage
3 Complete the PrO. No entries will be created.
No. Extra issue (Return) Budget/Actual Debit GL account Credit GL account
1 (Make item) Budget Production revenue Stock
Actual Stock change Stock
2 Part item Budget Production cost Stock
Actual Stock change Stock
Production WIP Stock coverage
3 Labor hour Budget Production cost Salary payment
Actual Stock change Salary payment
Production WIP Stock coverage
4 Machine hour Budget Production cost Salary payment
Actual Stock change Salary payment
Production WIP Stock coverage
5 (By-product) Budget Production cost Stock
Actual Stock change Stock
No. Extra receipts (Return) Budget/Actual Debit GL account Credit GL account
1 Make item Budget Stock Production revenue
Actual Stock Stock change
2 (Part item) Budget Stock Production cost
Actual Stock Stock change
Stock coverage Production WIP
3 (Labor hour) Budget Salary payment Production cost
Actual Salary payment Stock change
Stock coverage Production WIP
4 (Machine hour) Budget Salary payment Production cost
Actual Salary payment Stock change
Stock coverage Production WIP
5 By-product Budget Stock Production cost
Actual Stock Stock change
No. Scrap Budget/Actual Debit GL account Credit GL account
1 Make item Actual Production scrap Stock
2 Part item Actual Production scrap Stock change
3 By-production actual Production scrap Stock

     
 Main Category: Support Product Know How  Document Type: Release notes detail
 Category: Release Notes  Security  level: All - 0
 Sub category: Details  Document ID: 11.008.289
 Assortment:  Date: 11-05-2017
 Release:  Attachment:
 Disclaimer