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GL Batches – From Receipt of Raw Materials to Invoicing of Finished Goods
The term “GL batch” refers to the collection of transactions and the values contained within that are compiled by Seradex’s Day End Processing functionality and are posted to your company’s accounting system General Ledger accounts, either via a flat file which is imported (Accpac, Great Plains), or directly into the accounting system (Quickbooks).
The purpose of this section of the manual is to demonstrate how the values contained within GL batches are calculated for each step in the manufacturing cycle. GL batch entries for inventory adjustments will also be covered at the end of this section.
Manufacturing GL Batch Milestones
Values are eligible to be included in GL batches at the manufacturing milestones listed below:
| 1. | Approval of a receipt of raw material |
| 2. | Approval of a vendor invoice. |
| 3. | Work order material allocation (WIP transfer) (optional step) |
| 4. | Completion of a work order |
| 5. | Approval of a sales order invoice. |
Standard Cost vs Actual Cost
When posting GL batches you have the option of posting Standard Cost only, or posting Actual Cost with a cost variance to the Standard Cost. Posting Standard Cost will use the item standard cost as displayed in the Item Master. Posting Actual Cost will use the value of the inventory actually used in production as determined by the purchase price. The posting method used is determined on the Accounting tab in Application Preferences.
Explanation of Accrual Accounts
You have the option of incorporating accrual GL accounts with your receiving GL batch. Accrual accounts track the value of material received which have not yet been invoiced, enabling you to have a clear picture of what you owe to your vendors. To enable accrual account posting, go to the Accounting tab in Application Preferences and check the AP Accruals check box.
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