How to Generate Manufacturing Account with Details

Overview:

The Manufacturing Account with Details report in QNE AI Cloud provides a detailed breakdown of manufacturing costs, including raw materials, direct labor, factory overhead, and work-in-progress adjustments. It helps businesses analyze total production costs and evaluate the efficiency of their manufacturing operations.

Key Benefit: Offers a transparent view of cost components, supporting accurate product costing, pricing, and profitability analysis.

Scenario:

A cost accountant in a manufacturing company needs to present a cost analysis to management. By generating the Manufacturing Account with Details report, Ramon can show the breakdown of material consumption, direct wages, and factory overheads. This detailed view helps management understand production expenses and make decisions on cost control and pricing.

Solution:

1. Navigate to Reporting > Report Center > General Ledger > Manufacturing Account with Details.
 

2. In the filter section:

• Set the Date Range for the reporting period. 

• Use the Show Level option to control report detail. This indicates that account groups and sub-accounts are dependent on the level number.
  

3. Click Preview to generate the report.

4. Review the results:

• Analyze breakdowns of direct materials, direct labor, and factory overhead.

• Check adjustments for work-in-progress and finished goods.

• Use the Show Level option to expand or summarize details as required.

Application:

• Product Costing: Determine the total cost of goods manufactured to support pricing decisions.

• Performance Evaluation: Compare actual manufacturing costs with budgets or standards.

• Expense Control: Drill down into account or transaction-level details for deeper cost analysis.

• Financial Reporting: Provide summarized or detailed manufacturing cost schedules for financial statements.

• Audit Readiness: Adjust detail levels to present a clear and transparent view of production costs during audits.