Miscellaneous
This exercise will help you to get a better understanding of the Aptean Beverage Manufacturing extension. The exercise can be performed in the Cronus Demo company.
NoteCreate a copy of this company to keep your Cronus Demo in the original state. In the copy you can do all the exercises that are included in the training.
Exercise 5 - Miscellaneous
WIP account from Component
As best practice in beverage (and in general in process industries) the cost of consumed materials is not posted to a balance sheet account for work in progress, but to an expense account (‘cost of consumed materials’). At the same time output of the produced semi-finished or finished product is not posted against such a balance sheet account as well, but to an internal ‘revenue’ account (‘increased value of SF/Fin. Products’). Consumption is not posted at the beginning of a next production order, but at the end at the same time with the output (backflushing or just manually through the production journal). The produced semifinished products show as ‘inventory’ in bins (tanks), but is interpreted as ‘Work in progress’ (process production never has stock of semi-finished products, once finished the volume is pumped into a next tank for a next production order).
Search Inventory Posting Groups
Notice the WIP Account from components field is checked for those codes used in production orders. This will make sure that value entries for consumption will be posted to the ‘WIP’ account for the Inventory posting group of the material, not the produced item.
Search Inventory Posting Setup
Notice the WIP accounts for the inventory posting group of materials, semi-finished, and finished products. Check the ones for the production location.
As a result of this, capacity is posted ‘neutral’, check the WIP account for the Inventory posting groups with location blank and check the balancing account in the General Posting Setup for the Product Posting group of your work center (the Direct Cost Applied account).