Accounting cycle of ready-made concrete companies with application of the ready-mixed concrete station management program
What is the accounting cycle for ready-mixed concrete activity?
What is the accounting treatment for the manufacturing cycle in the ready-mixed concrete activity and how can it be applied in the ready-mixed concrete station management program?
What is the accounting treatment for wage costs and indirect costs and how to charge them for complete production of ready-mixed concrete?
Let's agree at the beginning, that To be able to design an Accounting cycle And proper documentary For any activity, whether it is a commercial, industrial or service activity we must know the nature of this activity and how it takes place in the operating cycle, and based on this, we start designing the appropriate accounting system for the nature of this activity.
What is the accounting treatment for ready-mixed concrete activity and how does it apply to the program of accounting and management of ready-mixed concrete stations?
In principle, we must know that the ready-mixed concrete activity is an industrial activity based on the production order system, in which the production will be according to the requirements, specifications and standards of the customer, in addition to the fact that the type of production itself does not require storage, means the raw materials enter the production line and in the end a complete product comes out to the customer Directly without exceeding the stores.
The Accounting cycle for ready-mixed concrete activity with application with application of the ready-mixed concrete station management program
The first stage is the stage of purchasing raw materials
It is the first stage through which we confirm the procurement processes that are made either in the ledgers or on the accounting program of ready-mixed concrete plants. Of course, the movement of purchases can take place through a complete procurement cycle or one stage, and in most cases we will find that the purchase movements take place in the concrete plants themselves, and they are done in two steps
The first step:
it is a proof of receipt of various raw materials, such as gravel and sand, from suppliers, under receipt permits, indicating the quantity of items purchased the number of the permission, the number of the car, and the driver who supplies the raw materials.
Receipt permits form in the program of accounting and management of ready-mixed concrete stations
Accounting and management program of ready-mixed concrete stations
The second step:
which is to prove the invoice from the collection of receipt permits that were made during the period (one day or more than the combined day), and we let us know that the invoice is the main document and through which we prove the accounting record for us. It is also necessary to let us know that the bill for the purchase of raw materials is not required that it contains raw materials. Only, but may include services such as cement transportation "freight" .Here, we note that the accountant should prove the cost of purchased raw materials at the purchase price plus the cost of the raw materials, but it is possible for the tax treatment to differ, especially the deduction and collection tax, and in general the invoice form is from the warehouse management program, which certainly integrates with the prefabricated concrete stations management accounts program
As soon as the invoice is saved, the journal entry is automatically recorded in the general accounts program in this way
Ready mix concrete station management program
So far, we did not do anything except that we bought raw materials and stored them in the warehouse or ready-mixed concrete station, but in reality we did not cost anything because we did not produce anything yet, so and during the following paragraphs we will talk about the production cycle and the accounting guidance for it.
The second stage is the creation of a production order in the program of accounting and management of ready-mixed concrete stations
Through the production order, we specify the quantities to be produced based on the customer's previous request, and the picture shows the production order screen in the Ready Mix Concrete station Management Accounts program
After the production order is ordered through the plant manager, the specialist engineer begins to enter explaining the quantities of raw materials that have been actually calculated, as well as the quantities of the finished product that were actually produced, confirming the quantities actually withdrawn in ready-mixed concrete stations management accounting program
Proof of raw materials in the Accflex accounts and stores program entry Withdrawal
. Proof of the complete addition of the product in the accounting ready-mixed concrete stations program
The journal entry resulting from the permission for addition in the general accounts program
Finally, the entry proof and allocation to uploaded the production command including the particulars direct and indirect cost centers
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