Manual

Posting assembly

Post on an assembly order (under Action) posts the whole order at once. It asks first (“This will take the components out of stock and put the item made into stock.”) and has Preview Post, which shows the entries without posting them.

What posting checks

• The order has an Item No., a Location and a Posting Date, and a Quantity more than 0.
• It has at least one component with an item and a quantity.
• Inventory Setup names Posted Assembly Order Nos.
• Each component is in stock at the order’s location: stock can’t go below zero, so posting stops on the first component short, saying how much is there and how much was needed.
• The posting date is one you may post on, and the dimension codes can be posted.

What posting writes

1. Each component leaves stock as an Assembly Consumption item ledger entry at the order’s location, valued by the component’s costing method (FIFO or Average), as any stock that leaves is.
2. The item made comes into stock as one Assembly Output item ledger entry, valued at the total cost of the components it took.
3. A Posted Assembly Order is kept, numbered from Posted Assembly Order Nos. (PAO… at Passion Bakery), with:

Its Components keep each component’s Quantity per, Quantity, and actual Unit Cost and Cost Amount, which can differ from the order’s estimate.

4. The assembly order is deleted, its attachments going to the posted order, and the Posted Assembly Order opens. Its Item Ledger Entries action shows the entries the posting made.

All the entries carry the posted order’s number as their Document No, with the document type Posted Assembly, and the order’s dimension codes.

The general ledger

Each side posts against the Inventory Adjmt. Account of Inventory Posting Setup: the consumption debits it and credits the components’ inventory accounts, the output credits it and debits the item’s inventory account. The two balance, so the value moves from the components’ inventory accounts to the item’s. A posting’s amounts are added up by account (and dimension codes) before they reach the general ledger, so when the components and the item share the adjustment account, as at Passion Bakery, its amounts cancel out and only the inventory accounts show.

Grace’s bake of 250 white loaves at BAKERY, with flour at 3,600 a KG and the other ingredients at the bakery’s usual costs:

220300 Inventory Adjustments took 576,000 on each side and is left as it was. The loaves are in stock at 2,304 each. When they are sold, their cost goes to 220100 Cost of Bread and Buns Sold at that value.

When a component’s cost changes later

Stock is valued at its receipt’s cost until the vendor’s invoice comes. If the invoice’s cost differs, the difference follows the stock wherever it went: for flour already baked, into the bread it was baked into (an adjustment on the Assembly Output entry), and from there into the cost of the bread sold. So the bread is always valued at what its ingredients really cost.

Where to look afterwards