Event | Debit | Credit |
---|---|---|
Components issued to the work order | WIP a/ct from stock category of manufactured item | Stock account from the category of the component item |
Labour issued to the work order (identical to any other component except that labour type categories have profit and loss accounts for their stock account) | WIP a/ct from stock category of manufactured item | Labour recovery account from category of the labour type item |
A completed manufactured item is received against the work order | stock account from the category of the manufactured item | WIP from the category of the manufactured item |
Work order closed and the difference between the WIP debits and credits from the above transactions is compared and the balance is either
|
WIP / Usage variance | WIP / Usage variance OR stock |