Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 17 · Cost Processing and Close
Reading the accounting
Lesson 177 of 188 · 13 min
Open the distributions for a work order and read every line aloud. Trace material issued to WIP, resources charged to WIP, overhead absorbed to WIP, finished goods received from WIP. Show WIP netting to near-zero on a closed work order, and explain the residual. Trace an inventory transaction — a subinventory transfer, and a scrap — and show the account each line hit, tying it back to the account mapping. Read the journals aloud. This is the lesson that turns a supply chain consultant into somebody Finance will listen to. That is why an apparently dull walkthrough is worth your full attention. WIP should net to approximately zero on a closed work order. What is left is variance, and the next lesson explains it. Non-zero WIP on closed work orders is a red flag. Every account traces to the cost structures module. If one is wrong, that is where to…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order, with a certificate on completion and a fourteen-day refund window.
In this module: Module 17 · Cost Processing and Close
- 1From transaction to journal
- 2Transferring transactions to costing
- 3Creating cost accounting distributions
- 4Creating accounting
- 5Reading the accounting
- 6Work order variance analysisFree preview
- 7Cost accounting period close
- 8Reconciling to the general ledger
- 9What breaks
- 10Lab: close the period and prove the number