The steps below explain the effect of costing and the general ledger (G/L) account update during the production process in Dynamics 365 Business Central.
For this specific walkthrough, please find below the G/L Account that will be used:
Step 1: Inventory Posting Setup:
Step 2: After Consumption of Raw Material:
WIP Account is Debited (increase) and Inventory Account is Credited (decrease).
Step 3: After Posting Output:
- Capacity Entry: WIP account is Debited (increase) and Direct Cost Applied Account is Credited (decrease).
- Finished Goods: Interim Inventory Account is Debited (increase) and WIP account is credited (decrease).
Step 4: After Order is Finished:
Step 5: G/L Account Updates After Reviewing the G/L Account:
- Finish Good Inventory account is Debited (increase) and Interim Inventory Account is Credited (decrease).
- At the same time, WIP account is cleared.
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