Module integration

Question

hello,
I want to know the accounting entry of finished goods after pp:
the following entries are-
1. On completion of production confirmation the following entry is passed
     Finished goods stock A/c               Dr
     Cost of goods produced               Cr
2. Settlement to production orders for variances will pass the following accounting entry
     Price Diff / Variance A/c               Dr / Cr
     Cost of goods produced A/c     
          Cr / Dr
3.  At the time of issue of finished goods against the sale order, the following entry is passed
     Cost of goods sold A/c               Dr
     Finished goods stock A/c               Cr
this is correct but i want know the entry passes before point no.3 ie
if COGS  a/c is debit then at what time it was credited.
urgent
points will be given

Answer 1

Hi Frnd,
COGS is not credited ever.
Its just a P & L item. Whenever Goods are manufactured and trf. to Stock then COGM will be credited and FG stock will be debited because we are getting goods and its whole Manufacturing cost will be credited to goods.
Whereas COGS is the cost of selling the product. It will be shown on Debit side of P & L Account so COGS in not credit.
I hope this will solve ur confusion
Assign Points if USEFUL
Regards,
Jigar