Ledger entries created from processing a production flow
The Production groups page can be accessed from Cost management > Ledger integration policies setup > Production groups.
The production group that is associated to the production flow defines the work in progress that is related to ledger accounts. You can use the production group setup to resolve the ledger accounts that originate from the production flow for the following posting types in general ledger:
- Ledger - Items
- Ledger - Resources
- Ledger - Lean subcontracting
- Ledger - Indirect
Inventory posting profile
Access posting profiles from Inventory management > Setup > Posting > Posting.
If accounts are not defined for a production group that is named for the production flow, the system falls back to the posting profile for resolving the ledger accounts for a particular posting type.
Report production flow activities
The reporting of production flow activities encompasses starting, picking, and completing withdrawal and process kanbans. This section describes the ledger entries that occur during the posting of materials and resources within a production flow.
The following table describes typical scenarios and their outcomes regarding the accounting entries that occur for typical transactions during kanban processing.
| Scenario | Outcome |
|---|---|
| William reports a kanban transfer job, recording movements of materials and parts that replenish the production flow and/or store its produced goods. | An issue transaction and a receipt transaction are posted, debiting and crediting the inventory cost accounts that include labor and indirect costs. No costs are posted to WIP in this scenario. |
| Shannon reports a kanban process job, recording quantities of material that are picked for an activity. | A credit is posted to the product inventory cost account and a debit is posted to the production flow’s WIP account. |
| William reports a scan empty transaction, reporting a bin or container as having been emptied. The location type is Kanban supermarket for the location that is being emptied. | A credit is posted to the product's inventory cost account and a debit is posted to the production flow WIP account. |
| Shannon reports a kanban job of type Process (receipt), recording quantities of the product that result from an activity. | A credit is posted to the production flow WIP account and a debit is posted to the product’s inventory cost account. |
| Update on hand on pick and Update on hand on receipt are not inventory controlled. | No inventory transactions are recorded, and the system does not cost account the transaction. |
| Update on hand on pick is not inventory controlled but Update on hand on receipt is. | Supply Chain Management credits the production flow’s WIP cost account and debits the product inventory cost account. |
| Update on hand on pick is inventory controlled but Update on hand on receipt is not. | Supply Chain Management credits the product inventory cost account and debits the production flow’s WIP cost account. |
| Update on hand on pick and Update on hand on receipt are inventory controlled. | Supply Chain Management cost accounts a transfer, crediting the destination product inventory cost account and debiting the product inventory destination cost account. Depending on the posting profile, these entries can be to the same GL account, or if the destination cost account is different, the entry could be to another GL account. |
| A transaction is cost accounted as a picking list, and the costing sheet is set to apply to production flow. | Supply Chain Management invokes the costing sheet for the picking list and computes indirect costs. As a result, the system credits the indirect cost absorption cost account and debits the production flow work in progress cost account. |
| Production flow activities use operation resources that have cost categories. | Supply Chain Management computes, records, and posts conversion costs on the basis of the produced product's standard cost share of direct manufacturing cost for each cost category. As a result, the system credits the cost category absorption cost account and debits the production flow WIP account. |
Emptying kanban handling units for any other type of location but kanban supermarket will have no inventory transaction and does not create the transaction. Emptying handling units on kanbans that are posted to WIP, which is when the Update on hand on receipt is No, will cause backflush costing to consider the material as consumed from WIP. Kanbans that are not empty will be considered as remaining in WIP at backflush costing.
Production flow standard cost transactions
As transactions are posted for a production flow, you can view them from the Standard cost transactions page, which you can access from Production control > Setup > Lean production flow > Production flows. Select the Production line item and then, under the Transactions submenu, select Standard cost transactions. Voucher transactions can be viewed for the transactions on this page by selecting the Ledger > Voucher menu button.