Production accounting
The Production Accounting module keeps the production accounting journal, automatically determines the work in progress and computes the price differences, generating the corresponding entries in the class 9 accounts (management accounting). It integrates the data with Production, Inventory and General Accounting, and the journal is checked against the trial balance before post-costing.
What you can do
Section titled “What you can do”- Production journal — all consumption, labor and expenses, with debit/credit account, classification, cost center and the order/lot code.
- Trial-balance check — the production journal must equal the trial-balance expenses (the prerequisite for running Post-costing).
- Work in progress (WIP) — per order, cost center, section or project.
- Price differences — standard cost vs. actual cost, including at stock release, posted automatically.
- Automatic accounting entries — generated together with the financial ones (consumption, service invoices, payroll, bank fees), with later automatic top-up for special cases.
Production journal
Section titled “Production journal”All production expenses are grouped by type (direct, indirect, non-incorporable, under-activity), with debit/credit account, classification, cost center and the order code — the basis for post-costing.
Correspondence with financial accounting
Section titled “Correspondence with financial accounting”Production accounting entries are generated together with the financial ones: when you tick the generation of accounting entries for classic accounting — from consumption, from service invoices, from payroll, or on payment orders when bank fees are recorded — the production accounting entries are generated automatically as well.
For the cases where production entries are not generated automatically, there is a later automatic top-up facility. This way, the expense trial balance is reconciled with the production accounting journal.
There is a correspondence between the two ledgers, but a single line in financial accounting can become several lines in production accounting, allocated by cost center. For example, a financial entry:
Financial accounting (one line): 605 = 401 → 1,500
becomes, in production accounting:
| Entry | Cost center | Amount |
|---|---|---|
924 = 605 |
C1 — production department | 500 |
924 = 605 |
C2 — company HQ | 700 |
924 = 605 |
C3 — warehouse | 300 |
| Total | 1,500 |
Trial-balance check
Section titled “Trial-balance check”Before post-costing, the production journal is checked against the trial balance: journal = trial-balance turnover, with zero differences. Only then are the expenses complete and can be allocated correctly to orders.
Work in progress and price differences
Section titled “Work in progress and price differences”Based on post-costing, the system determines the work in progress and the price differences (favorable/unfavorable), including at stock release (standard cost vs. actual cost).
Production accounting entries
Section titled “Production accounting entries”The results are posted automatically as synthetic accounting entries — expense collection, indirect allocation, production at standard and actual cost, price differences and work in progress.
Typical flow
Section titled “Typical flow”Consumption + labor + expenses → production journal → trial-balance check → Post-costing → work in progress and price differences → accounting entries (class 9 and financial) → P&L.
Benefits
Section titled “Benefits”- Automatic accounting and management records of work in progress.
- Production journal reconciled with the trial balance — a correct basis for post-costing.
- Full traceability from consumption and labor to the final cost.
See the video tutorials or contact us for help.