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Hi,

Yes! I saw your videos. It's very helpful. I hope there's more of those videos for customization. Thanks.

Dear Braath,

Thanks for your informative replies. I learned a few things from you on how to use the system.
Yes. It seems Service Item is available for issue. However, when you use it. It results to no GL entries. (not sure what's the purpose)

Since my requirement is FIFO for manufacturing, I'm planning on using these steps.

1. (To input purchase of raw material) create Supplier Invoice GL Account (Temporary Raw Material Inv. Account)
2. Then, after I get the results of the actual manufacturing of the product.
2.1 Create Supplier Invoice GL Account (Temporary Raw Material Inv. Account) - to add charges
2.2 or Create Credit Invoice GL Account (Temporary Raw Material Inv. Account) - to deduct the amount
   Note: This will include in the supplier ledger the amounts needed to debit or credit

3. For Manufacturing from Raw Material to Item B, (using advance manufacturing)
3.1 Without issuing any items, I'll go straight to Cost. And add cost crediting from GL Account (Temporary Raw Material Inv. Account) = credit amount = purchase amount + (add invoice/credit invoice amount)
3.2 Produce the item

Thus, I was able to implement a FIFO costing for manufacturing.

Drawback:
* I have to have an external excel file to record the Batch entries of purchases (since they are per LOT) and I have to output it as FIFO Amount per LOT.
* No inventory quantity is recorded for the item. Only Inventory Amount is present.

What do you think?

Thanks and Regards!

Dear Sir,

Could you expound a little bit? I didn't clearly understand the details.

Our step process:

1. Purchase Raw Material (Item A)
1.1 Item A - 1000 kg @ 20php/kg. = 20,000php

2. Pay Supplier the purchased (Item A)
1.1 Payment - 20,000php

* Waiting Time for production of (Item A) (depending on the queue line)

3. Manufacture (Item A) to (Item B)
3.1 Issue Item A - 1000kg @ 20php/kg (depends on the average cost) = 200,000php
3.2 Add Labor Cost/Add Overhead Cost if any (optional)
3.3 Produced Finish Product: Item B = 500kg (take note of the shrinkage of kilogram) because our item by nature losses weight due to water evaporation.
3.4 Produced Summary: Item B = 500kg @ 40php/kg = 200,000php

4. Liquidation of Purchase (Prior to purchase of Item A. Our actual purchase would take place based on the Dry Weight of Item A which is equal to Item B)

4.1 Two Scenarios

4.1.1 Thus, if we had an agreed purchase price of Item B as 45, then I need to make a purchase supplier invoice to add cost to Item-B without affecting the inventory quantity.
4.1.2 Thus, if we had an agreed purchase price of Item B as 35, then I need to make a credit note to deduct cost to Item-B without affecting the inventory quantity.

Analysis:
Based on my testing with the system, since FA is using average cost. I'm not sure if it's possible because our manufacturing process involves FIFO cost input for the issued items. Because using average cost would include in the manufacturing process the unrealistic cost of the produced item. And we can't add/deduct cost to the specific item via supplier invoice/credit note.

Hi,

Yes I tried doing the Supplier Debit/Credit Notes. But it requires to debit or credit past supplier invoice.

I would like to to debit/credit note without referring to a previous transaction. Just want it to directly enter the GL Inventory Item. So that it would only affect the amount (add amount/less amount) and not the quantity. But it seems GL Inventory does not refer to a specific Item.

Do you have ideas?