Production posting activities follow the production process.

• As items are consumed during production they are recorded in the production order. This process generates issue transactions to make up for the missing raw materials.

• As the materials are consumed, they are posted to both the Picking list issueaccount and the Picking list offset account.

When the production is reported as finished, a receipt transaction is posted to the finished item. The cost calculated for the finished item is then posted to both the Report as finished receiptaccount and the Reported as finished offset account.

Finally, when production is complete, all accounts are updated with the final calculations. The raw materials that were actually consumed are credited to the account tracking inventory issues and debited from the account tracking item consumption. The overall cost of the finished item is debited from the inventory Receiptaccount and credited to the inventory Issuesaccount.

Note
If the standard method for calculating the cost of the finished item was used, the final transactions also reflect this. If there is a difference between actual costs and costs calculated using the standard method, it is posted to the account showing profit or loss.