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Inventory Valuation & Manufacturing

 

We are doing some work with inventory valuation and manufacturing and I
would just like confirmation of what I feel is true.

Looking at the product setup for Accounting I do not see a
Valuation/Variation account so my recommendation is to always do the setup
on the category.

To do the setup on the category I believe the following:
The component product must be in a different category than a finished good
The component product could be sold alone or used in manufacturing
The finished good product category must have different inventory accounts
than the component product category (like WIP & Finished Good)

This setup facilitates the move from Raw Materials (component product
category stock variation) to WIP (Stock Input & Expense Account on the
Finished Good category) to Finished Good (the stock variation account on
the finished good category).

What I am trying to confirm - there is no way to complete this process by
using the product configuration alone AND using a combination of product
confirguration and category configuration will not have the desired results
unless you have categories separate for both components and finished goods.

Thanks in advance for any response.


-- 
Laurie Chrostowski
Business Analyst
NovaPoint Group, LLC
(586) 330-9170
skype: lchrostowski

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