General Ledger Postings for Bills of Materials

The General Ledger postings generated when a Bill of Materials is sold vary depending on the Bill of Material's type.

Postings for Kits

For kits, the component lines are equivalent to ordinary sales lines. The header line does not post to the General Ledger and the output code is not referenced.

The General Ledger accounts for Sales and Cost of Sales arise from the component stock item as per the rules for ordinary sales lines.

Postings for Builds

Postings for builds are as follows:

• Component lines that are stocked items are not posted to the General Ledger (they don’t affect the value of stock).

• Component lines that are lookup items are posted to the General Ledger as adjusting the value of stock (i.e. are value-add). These are posted with the General Ledger code for the Stock On Hand account from the GL Control Account setup.

• The Bill of Materials header generates two entries:

• • For inwards goods - to the General Ledger purchases account set on the Output item, (i.e. receipt the manufactured item into stock). The cost and sell of the stock transaction is the sum of the costs of the components (including lookups) and therefore incorporates the contra-entry for added value represented by the lookup item posting.

  • For the sale of the output item - with General Ledger accounts for the sales and cost of sales being taken from the Output item.

Postings for Order Templates

For General Ledger posting, the system treats lines of an order template identically to ordinary lines - the fact that they were derived from a Bill of Materials does not make a difference.