What are the stages of ACCFLEX production Software ?
To what extent can you obtain an accurate cost of end productions including all costs through using Accflex production software ? How to track the product cost considering raw materials , wages and indirect manufacturing costs ? What are the ways of allocating indirect costs of products and their applications on the best production, management and accounting software? ACCFLEX Production ERP Software is an integrated system designed for the purpose of managing and mechanizing of factories and manufacturing companies with different production and business. Moreover ACCFLEX Production Software supports orders and production stages order in both mass and non-mass production .
1 -Components ACCFLEX Production and Manufacturing Software :
ACCFLEX ERP Production Software interconnects with other subsidiary systems and departments . It consists of a group of ERP Business Applications that cover all activities of the factory , for example : General Accounting Module. Warehouse Management Module . Cash Control Module . Human Resources Module . Production Software .
2 –Applying ACCFLEX ERP Production software on a workshop :
The acquired items cost is tracked then the cost of end products is accurately determined . Although Purchasing cycle differs from a company to another , it always starts with a demand order from the responsible department then transforming this order into a payment order or a buying invoice . A demand order model from warehouse software (a component of ERP production software )
After considering and approving the demand order , it is transformed into a buying invoice and the purchasing is recorded into the journal entry. In addition the cost of acquired materials includes the actual price and all the direct costs for buying such as transporting , loading ……etc.
A model of a purchasing invoice and its journal entry from ACCFLEX ERP Warehouse software
The journal entry
Manufacturing and daily production plan:
Production Software enables you to get a complete flexible production cycle that supports production orders , non-mass production and production stages system which depends basically on mass production . The production cycle differs from a company to another according to its activity and other factors like the product type and requirements of operation and others.
ACCFLEX Production Software includes an integrated system to mange planning and scheduling production and its costs . Some examples of system stages :
Creating a production plan using one or a group of sales orders issued for a certain client during this period .
Creating a production plan on the basis of market requirements resulting from sales plan and balance during this period .
Creating an inventory production plan .
Consequently the user of production and manufacturing software is able to create production orders manually or on the basis of the schedule and plan included in the system .
A production order model from Production Software :
The stage of Creating production orders in Production Software :
After creating production orders in the Production Software the user ( engineers and production managers ) records raw materials withdrawal from stores or operation halls and adds the end product to production stock or under operation products inventory , in the case of intermediate products .Production Software provides the ability to check that there is enough balance of raw materials or intermediate products in the stores before starting the operation process.
Determining the cost of production order from raw materials in Production Software :
On withdrawing materials from stores the general accounting software records it automatically in the journal entry .
An entry of material withdrawal in ACCFLEX General Ledger Software
Adding indirect costs other than raw materials ( direct wages) to the under operation production :
The cost of production order as wages is previously determined as the user of Manufacturing Software sets average wages for each labour class which might be based on an hour basis or the actually produced units or even a manual value that differs from a production order to another .
In all cases the system adds the wages to the cost of the production involved in the order or stage , then this process is recorded as follows :
Wages addition to the productions ( A fully automated entry in the General Ledger SoftWare )
Adding indirect costs to the production :
Products at all levels (end product or half manufactured ) are allocated with factory overhead using rates or basics of overhead costs . Usually these costs are added to the products using a pre-determined overhead application rate , as the factory overhead is pre- determined then added to the productions approximately . At the end there is a comparison between the actual loaded product and the allocation difference is treated .
Production Software is so flexible in adding factory overhead on products either on the basis of approximation in cost allocation or on the actual basis . Furthermore the software provides a lot of standards for allocation of costs such as operation hours , raw materials cost , a manual value and others .
Indirect costs screen of different production stages
Indirect costs journal entry
So the production order or stages can be tracked considering direct and indirect costs . consequently pricing will be based on an actual database and a comparison between the actual and standard production and deviation treatment .
Production order cost report:
Therefore the product can be transported to end production stores to be sold for customers .
Manufacturing Software uses perfect accounting basics to be connected to Financial Accounting system as General Accounting Software automatically transferes all transactions into arranged journal entries without any human interference .