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Inventory Accounting: Manufacturing

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This question has been flagged
stockaccountingmanufacturinginventory
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Jithin PP

During manufacturing odoo default accounts entries like:

Moving raw material:

Stock Output (debited) - asset account
Stock Valuation Account(credited)- asset account


Finished product:

Stock Input(credited)- asset account
Stock Valuation Account(debited)- asset account


Then how will we balance entries of credit and debit in 'Stock Input' & 'Stock Output' accounts ?

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Lars Aam

Stock Output and Input should not be Asset account, but Cost of Revenue. Most likely your Finished product got a higher value that the sum of raw material. The difference should be posted to Profit & Loss as your Assets get a higher value during manufacturing.

Jithin PP
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Thanks @Lars Aam

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