Differences
This shows you the differences between two versions of the page.
Both sides previous revision Previous revision | |||
accounting_ch_11-tracking_job_costs [2019/01/30 12:58] kcifreo |
accounting_ch_11-tracking_job_costs [2019/02/05 17:08] admin |
||
---|---|---|---|
Line 9: | Line 9: | ||
You can choose how to track parts on a part-by-part basis. Some parts might be tracked using accrual accounting, some with cost accounting, and others still might be included for information purposes only and not costed at all. | You can choose how to track parts on a part-by-part basis. Some parts might be tracked using accrual accounting, some with cost accounting, and others still might be included for information purposes only and not costed at all. | ||
+ | \\ | ||
+ | \\ | ||
**Accrual (Financial) Tracking** | **Accrual (Financial) Tracking** | ||
Line 36: | Line 37: | ||
\\ **Cost Accounting (Non-Financial) Tracking** | \\ **Cost Accounting (Non-Financial) Tracking** | ||
- | Cost accounting focuses on determining the manufactured costs of the goods sold. In Control, cost accounting tracking is a supplement to financial accounting. There are many reasons that users do not wish to track or inventory all of their parts, but the root cause tends to be that the cost of financial tracking exceeds the value. \\ As an extreme example, imagine you own a small pizza business, and one of your costs is oregano for the pizza sauce. You could track the oregano in your inventory, and each time you make a pizza you could measure the amount of oregano and deduct it from your inventory. When the pizza is done, you record your expenses and find you spent about 5 cents on oregano. Since this is a small operation, you decide that it isn't worth your time to measure the oregano and you aren't going to track in on your inventory. Hence, financial accounting is a bit of overkill for this item. \\ Control gives you the option to track the costs only, which of course can be estimated in a consumption formula. You can assign the // | + | Cost accounting focuses on determining the manufactured costs of the goods sold. In Control, cost accounting tracking is a supplement to financial accounting. There are many reasons that users do not wish to track or inventory all of their parts, but the root cause tends to be that the cost of financial tracking exceeds the value. |
+ | \\ | ||
+ | \\ | ||
+ | As an extreme example, imagine you own a small pizza business, and one of your costs is oregano for the pizza sauce. You could track the oregano in your inventory, and each time you make a pizza you could measure the amount of oregano and deduct it from your inventory. When the pizza is done, you record your expenses and find you spent about 5 cents on oregano. Since this is a small operation, you decide that it isn't worth your time to measure the oregano and you aren't going to track in on your inventory. Hence, financial accounting is a bit of overkill for this item. | ||
+ | \\ | ||
+ | \\ | ||
+ | Control gives you the option to track the costs only, which of course can be estimated in a consumption formula. You can assign the // | ||
+ | \\ | ||
+ | In Control, computed costs and financial costs can be used in the analysis of an order' | ||
+ | \\ | ||
+ | \\ | ||
+ | Since the costs just appear without an inventory or source, Computed Costs are not based on double-entry accounting principals. When the cost is entered and the order is in WIP or Built, the entry made is: | ||
|**Account** ||**Quantity** ||**Debit** ||**Credit** | |**Account** ||**Quantity** ||**Debit** ||**Credit** | ||
Line 46: | Line 58: | ||
|Cost of WIP & Built||{{: | |Cost of WIP & Built||{{: | ||
|Computed Cost Account||{{: | |Computed Cost Account||{{: | ||
+ | \\ | ||
+ | \\ | ||
===== Inventory v. Non-Inventory in Materials ===== | ===== Inventory v. Non-Inventory in Materials ===== | ||
Line 56: | Line 69: | ||
Each of the three cases is considered below. | Each of the three cases is considered below. | ||
+ | \\ | ||
+ | \\ | ||
**Don' | **Don' | ||
If you are not tracking costs, Control will still allow you to track inventory. However, unless you are tracking costs there are no costs to consider. No financial or cost-tracking entries are made. | If you are not tracking costs, Control will still allow you to track inventory. However, unless you are tracking costs there are no costs to consider. No financial or cost-tracking entries are made. | ||
+ | \\ | ||
+ | \\ | ||
**Only Track Costs for Cost Accounting (not Financial Reports)** | **Only Track Costs for Cost Accounting (not Financial Reports)** | ||
Line 86: | Line 101: | ||
When posting bills for inventoried, | When posting bills for inventoried, | ||
+ | \\ | ||
+ | \\ | ||
===== Linking Bills to Jobs ===== | ===== Linking Bills to Jobs ===== | ||