Accounting Entries from Goods Receipts to Goods Sold (Entire Cycle)

1 Goods Receipts
Inventory A/c
To GR/IR

MIGO
Dr.
Cr.

1000
1000

2 Capuring the Exice Invoice

Cenvet BED
Cenvet Cess
Cenvet H.Cess
Cenvet Clearing

J1IEX
Dr.
Dr.
Dr.
Cr.

160
2
3
165

3 Capuring Vendor Invoice

GR/IR
Cenvet Clearing
Vendor
Withholding Tax

MIRO
Dr.
Dr.
Cr.
Cr.

1000
165
1142
23

4 At time of Payment
Vendor
To Bank

Dr
Cr

1142
1142

5 TDS Payment
TDS Payment
To Bank

Dr
Cr

23
23

6 At the time of Consumption of RM (both FI & CO entry)

RM Consumption A/c
Dr
To RM Inventory
Cr

500 In CO in PCC a/c

500

Qty * MAP (At Backflush)

7 Activity Conformation (only CO Entry)

Labor

Dr

200 PCC

(at the time of production order confrimation)

Labor

Cr

200 Cost Center

Qty * routing * Planned Rate

If Actual hours are fed, actual hrs * rate

FG Inventory

Dr

800

At Std rate of FG Material from Material Master

To Cost of Production (COGM)

Cr

800 PCC

Dr
Cr

800
800

10 Billing
Cutomer A/c
To Sales
To Cenvet Suspenses

Dr
Cr
Cr

1200
1002
198

11 Exice Capturing
Cenvet Suspense
To Cenvet Payable

Dr
Cr

198
198

12 Payment Received
Bank
To Customer

Dr
Cr

1200
1200

13 Utilization of Exice Duty

Cenvet Payable
Cenvet BED
Cenvet Cess
Cenvet H.Cess
Cenvet PLA

Dr
Cr
Cr
Cr
Cr

198 note:if we have any balance in service tax receivable then we should utilised this also.
160
2
3
33

14 Salary posting
Salary expense
To Bank

Dr.
Cr.

250 Cost Center

250

8 At Time of Production Conformation

(as per Standard include RMC & Conversion

cost)
Std Rate * Actual Qty

9 Sales-Goods Issues (Post Goods Issue- PGI)

Cost of Sales-FG (COGS)
To FG inventory

Qty * Std Rate at the time of sale

16
0.16
0.32
16.48

Month End
a
b
c
d
e
f

15 Cost Center Closing

Reposting/ JV entry (if change in Profit center)
Settlement of Plant maintenance and internal order
Maintenance of SKF
Allocation & Distribution run
Splitting of Cost
Activity rate calculation

If profit center get changed FI CO clearing entry will be passed

16 Calculate Actual Activity Rates

17 Revaluate PCC at Actual Rate of Activity (CO entry)

Labor
Dr
Labor
Cr

50 PCC
50 Cost Center

Difference of Planned and actual

18 PCC settlement (FI & COPA entry)

Cost of Production (COGM)
To Price Difference

50 PCC
50

RM Positive variance of Rs. 100 and labor negetive variance of Rs. 50

(will be separate line item in COPA)

COPA
Revenue
Cost of Sales
(include COGS & Price Difference)

Dr
Cr

1002
750

Profit

252
COGM

COGS

Assumption what ever produce are sold

COGM
Dr.
FG Inventory

Cr.
800 Price Difference
P&L

50
750

800

800

500 COGM (FG)

200 COGM (price difference)

800
-50

PCC
RM Inventory
Labor
Labor (Revaluation of activity
at PCC)

50
750

750

FI P&L
RM Consumption
COGS
Salary

500 COGM
800 Sales
250 Price Difference

Profit

252
1802

750
1002
50

1802