Manufactured Inventory Entry

This function at Accounting / Inventory / Manufacture Inventory creates some manufactured product based on the formula defined at the product level. The formula is established for a set quantity. The raw materials are relieved and the inventory for the finished item is increased.

  • Reference # – The program can automatically assign a reference number if the preference is set at Setup / Preferences under Counters. If it is not set to automatically number, enter a control number here – for example a hand ticket number. A reference number must be in this area for the transaction to be saved.
  • Date – Enter the date the product is blended.
  • Product – Double-click to select the product which represents the finished good.
  • Lot Number – If a lot number is to be associated with the finished good, enter it here. This is an optional entry.
  • Quantity Produced – Enter the amount blended in Inventory Units.
  • Comments – This is an optional place for notes.
  • Containers – This allows refillable containers to be selected for the manufactured inventory if necessary.
  • Reorder – The raw materials listed may be ordered differently in the grid. On each line item, set the priority in the Reorder column of the grid, and then choose Reorder. This changes the order the products show in the grid.
  • Product Grid – This displays the name of each raw ingredient, the quantity used based on the Quantity Produced amount and the units. Lot numbers may be selected from the available lots for each raw ingredient. Moving to the right displays the Unit Cost, Extended Cost per raw material, and the Reorder number.
  • Total Raw Materials Cost – Based on the cost set on the Inventory Department, the total cost of the raw materials displays.
  • Total Raw Materials Usage (lb) – Calculated by using the unit weight from the product profile, the total pounds of raw materials display.
  • Print on Save – Optionally print the manufactured inventory.

Manufactured Inventory Process

Produce a finished product from raw products, adjust inventory, and move and updates the cost of the products.

  1. Navigate to Accounting / Inventory / Manufacture Inventory.
  2. On the Select a Manufactured Inventory Entry window, select Add.
  3. Enter the Date and double-click in the Product field to select the finished product being produced.
    Note: Only products with Manufactured Formulas established are available to select.
  4. Enter the amount produced in the Quantity Produced field.
    Note: As the Quantity Produced is entered, the Quantity of the raw products changes to display the correct inventory quantities as determined in the Manufactured Formula.
    Note: Saving this entry updates the Last Cost and Average Cost for the finished good. If this department is computing Invoice cost based on Estimated Average Cost, it is also updated. The cost of the manufactured good displays when creating this transaction.
  5. Save the entry to update inventory.
    Note: If the total of the quantity of the raw products involved in the Manufacture Inventory process does not equal the quantity produced by the batch, a message displays upon saving. If the formula is correct, select OK to save the entry.

Posting Notes

Save of the Manufactured Blend

  • Inventory Detail – A record is made for the finished product and each raw material to leave an audit trail of inventory activity.
  • Inventory Amount on Hand – This amount is updated for the products involved. The finished product's quantity is increased and each raw material's quantity is decreased.
  • Finished Product Cost – The blended product's Average and Last Costs are updated based on the cost of the raw materials.

General Ledger

General Journal EntryDebitsCredits
Total cost of all raw materialsCost of Sales for finished product 
Each raw material cost Cost of Sales for each raw material product

If using Transactional Inventory valuation, the following information is included in the journal entry:

General Journal EntryDebitsCredits
Total cost of all raw materialsInventory Asset for finished product 
Each raw material cost Inventory Asset for each raw material product

Reverse – A new entry is made that is opposite of the original. All corresponding posting occurs.