How are the actual costs treated at the end of the period for the products that have been manufactured, and must your losses be reflected in the accounts and stores balance sheet? Note: I am working on version 15.
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Thank you, my dear friend, for the support
I want to explain to you that during the period the finished product is delivered to the finished product warehouse at the actual cost of the materials plus the estimated conversion cost, but at the end of the period there is a deviation in the conversion cost, whether increased or decreased. I want to address the differences in Odoo so that it is affected by the difference in the accounts’ balance. And warehouse models
Example
100 units of product X were produced and its standard cost was $10
At the end of the period, after distributing the costs, it became clear that the actual cost of the unit was $9
How to process teams on Odoo?
Once again I would like to thank you for the support
Hello
there is no such a direct way with that you can achieve directly your requirement.
At the end of the period, actual manufacturing costs (materials, labor, overhead) are accumulated in the Work-in-Process (WIP) account and then transferred to Finished Goods inventory once products are completed. When these goods are sold, their costs are moved to Cost of Goods Sold (COGS). Any losses, such as spoilage or inventory write-downs, are recognized immediately: normal losses are included in product costs, while abnormal losses are expensed right away. These adjustments ensure the inventory values on the balance sheet are accurate, reflecting the lower of cost or net realizable value, and provide a true representation of financial performance in the financial statements.
Thank You
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