Exact Globe

Release 370: Production journalizing for Czech Republic, Hungary, Slovakia and Vietnam

Background

Prior to Batch 370, upon journalizing financial entries for a production order, standard method for all the countries will be used. Each record will be book into respective production general ledger (GL) account predefined in manufacturing settings. At present, system generates financial entries for various production processes but the results do not apply for countries like Czech Republic, Hungary, Slovakia and Vietnam . Due to unique accounting practice, the existing journalizing of financial entries (upon production issue, receipts and completion) will be revised to cater for Czech Republic, Hungary, Slovakia and Vietnam.

Apart from all these countries, Romania also having its own method in production journalization. Details information can be found in Release 370: Production journalizing for Romania.

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

Manufacturing/Statistics/Rejected
Manufacturing/Statistics/Waste
 

A new method to journalize financial entries will be available for Czech Republic, Hungary, Slovakia and Vietnam legislation. Two additional GL accounts (stock change and stock coverage) will be introduced in item master and item group. Major areas affected are production issue, receipts and completion of production order. Only production order with 'Production' Work In Progress (WIP) will be using new method and as for production with No-WIP shall remain unchanged. In addition, journalized financial entries will be book into stock change and stock coverage GL accordingly.

All the manufacturing reports and overview screen have been adjusted to support this new functionality. Please take note that this new method only applies to actual records while for budget records, shall 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 into correct financial entries 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 to define GL account. When new item is created and linked with this item group, these two (2) GL accounts will automatically linked. Various validations are also in placed to prevent data inconsistency by prompting warning message to alert user.
 

Change to production GL accounts in used

Change to permitted GL account


Recode will not be performed when any stock change or stock coverage GL accounts are amended. However, warning message will be prompted to inform users of the impacts. Changing both GL accounts will prevent users from viewing most of the production orders reports and overview.

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

Using production-WIP method is similar to No-WIP method EXCEPT in WIP method, all the cost and revenue will be booked into production WIP GL account. Upon completion of the production order, all the entries made to WIP will be reversed to its respective GL accounts.

As for issuing of part item that contains waste, it will be booked into production WIP GL account instead of waste GL account. Hence, all the rejected and waste production report is no longer visible. These reports are dependent on waste GL account in order to calculate the rejected goods and waste amount.