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inventorycategoriesproductcategory
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MUHAMMAD javed IQBAL

I have three types of stackable products.

1 - purchase only. in this category, I buy the product, store it in Raw material and use them for production.

2 - sales only. in this category, I use the ref 1 material as raw material and produce new products and sell the finished product.

2- Purchase, sale and manufacturing. in this type of product, the same product sometimes i purchase and sell directly to our customers and sometimes I produce/manufacture this product by using raw material ref 1.

I want to set up automated inventory valuation, please guide me on how i enter the account stock properties (valuation, input, output) and expenses account. 

 i have the following account  in the chart of account;

101-raw material inventory valuation -assets

102 - finish material inventory valuation - assets

103 - work in progress - assets

104 - stock receive - liability

105 - stock deliverable - Cost

106- the cost of goods sold

lets say i used  1) purchase only 

valution= 101 raw

input = 104 receive

output = 103 - WIP

FOR SALE ONLY 

i used

valuation=102 finish product 

input = 103 - wip

output = 106 COGS

expense = 106 cogs

what about produt 3) sale, purchase and manufecture 

valuation=?

input =?

output =?

expense =?


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Fady Noor Ilmi Lubis
Best Answer

i usually use the stock deliverable with the type of "Current Assets"

then the configuration of my products will be:

1) purchase only 

valution= 101 raw

input = 104 receive

output = 105 - deliverable

2) FOR SALE ONLY 

valuation=102 finish product 

expense = 106 cogs

input = 104 receive

output = 105 - deliverable

3) sale, purchase and manufecture 

valuation=102 finish product 

expense = 106 cogs

input = 104 receive

output = 105 - deliverable


by doing so, it will give you the right journal when creating Vendor Bill, Good Receipt, Delivery Order, and Customer Invoice

how about the Production Journal?
set the WIP into the stock valuation account incoming and outgoing of the Production Location (you need to install MRP module, enable Storage Location in the Inventory Configuration, and find it in the Locations menu) 
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