mcarey101
03-10-2004, 12:31 PM
We are in-houseing our manufacturing process and need to know how to change our accounting for this.
Previously, we did 3 PO's for raw materials (A, B and C) and a 4th PO for for the packaging of these materials (X). All the raw materials were delivered to the manufacturer who assembled them and then shipped to us. We would receive invoices for all 4 of the PO's then in PT we received all the items in the PO's into inventory. We then would "build" the actual item that we sell using a BOM that included A, B, C and X. This gave us the correct cost of the items.
Now we do the packaging ourselves and have all the costs associated with that (monthly machine lease, electricity, gas, labor, maintenance on machinery, etc) which essential replaces the PO and invoice for X above. How do we use PT to assign these costs to the items being manufactured ?
Previously, we did 3 PO's for raw materials (A, B and C) and a 4th PO for for the packaging of these materials (X). All the raw materials were delivered to the manufacturer who assembled them and then shipped to us. We would receive invoices for all 4 of the PO's then in PT we received all the items in the PO's into inventory. We then would "build" the actual item that we sell using a BOM that included A, B, C and X. This gave us the correct cost of the items.
Now we do the packaging ourselves and have all the costs associated with that (monthly machine lease, electricity, gas, labor, maintenance on machinery, etc) which essential replaces the PO and invoice for X above. How do we use PT to assign these costs to the items being manufactured ?