Brazilian material ledger

1

This document is property of Softtek®.This document is property of Softtek®.

Divulgation and copy is prohibited without written permission of Divulgation and copy is prohibited without written permission of Softtek®Softtek®

CopyrightCopyright 1998 - 2004 Softtek® All Rights Reserved 1998 - 2004 Softtek® All Rights Reserved

Material Ledgerwithout Work in Process

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Assets & Liabilities

P&L

Material Ledger without WIPData for Simulation: Standard Price (Raw material) R$ 10,00

Finished Product = R$ 15,00Planned rate for the activity R$ 5,00 / h

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1 – Buy 10 pieces at R$ 13,00

(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

The new price is R$ 3,00 greater by unity. This difference will be posted in PRD10 x R$ 3,00 = R$ 30,00


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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM 2 – Consumption of 5 pieces(2) 50,00

(2) 50,00

Consumption of Raw Mat.

Consumption of 5 unities at standardPrice of R$ 10,00 for the production order



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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Raw Mat. Consump.

3 – Worked hours allocated

Production Order

Actual Planned

Cost Center

(3) 25,00

(3) 25,00

5 worked hours pointed to the Prod. Order5 h x R$ 5,00 = R$ 25,00

2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Consump. Raw Mat. Production Order

(3) 25,004 – Order appointment: 5 pieces

(4) 75,00

(4) 75,00

Finished product

Actual Planned

Cost Center

(3) 25,00

Send 5 pieces of finished prod. to stock: Standard cost by unitRaw Mat. 10,00 +Activity 5,00 /H

5 pc x 15 = R$ 75,00

1 unit of Raw Mat. Still in order R$ 15,00

3 – Worked hours allocated2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00

Raw Mat. Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Consumption of Raw Mat. Production Order

(3) 25,00

(4) 75,00

(4) 75,00

Finished Product

5 – Sell 2 products

(5) 30,00

(5) 30,00

Actual Planned

Cost Center

(3) 25,00

Cost Goods Sold

Stock: 2 pc

Sell of 2 finished pieces at unitary cost of R$ 15,00

4 – Order appointment: 5 pieces3 – Worked hours allocated2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00

Raw Material Vendor

PRD or KDM

(2) 50,00

(2) 50,00


(3) 25,00

(4) 75,00

Finished Product

(5) 30,00

(5) 30,00

CGS

6 – Salary payment

Cash / Banks

(6) 30,00

(4) 75,00

(6) 30,00

Actual Planned

Cost center

(3) 25,00

5 – Sell 2 products4 – Order appointment: 5 pieces3 – Worked hours allocated2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

(2) 50,00

(2) 50,00


(3) 25,00

(4) 75,00

Finished product

(5) 30,00

(5) 30,00

CGS

Cash / Banks

(6) 30,00

7 – Rate revaluation, from R$ 5,00 to R$ 6,00 per hour

(7) 5,00(4) 75,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00Revaluation of actual rate and revaluation of production order referred to 5 pieces consumed.5pc x R$ 1,00 = R$ 5,00

6 – Salary payment5 – Sell 2 products



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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Consump. Raw Mat. Prod. Order

(3) 25,00

(4) 75,00

Finished Prod.

(5) 30,00

(5) 30,00

CGS

Cash / Banks

(6) 30,00

(7) 5,00

8 – Differences calculation andOrder appropriation

(4) 75,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(8) 5,00(8) 5,00





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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Consump. Raw Mat.

(4) 75,00

Finished product

(5) 30,00

(5) 30,00

CGS

Cash / Banks

(6) 30,00

(8) 5,00

9 – Single-level to multi-levelDifference of Raw Mat. consumed by Order

PRV or KDV(9) 15,00

(9) 15,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

This operation is done only in the material ledger

closing

(3) 25,00

(7) 5,00(4) 75,00(8) 5,00

Production Order






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(1) 100,00 (1) 130,00

(1) 30,00

Raw material Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Consump. Raw Mat.

(4) 75,00

Finished Prod.

(5) 30,00

(5) 30,00

CGS

Cash / Banks

(6) 30,00

(7) 5,00

PRV or KDV(9) 15,00

(9) 15,00

10 – Closing postings

(10C) 12,00

(10D) 8,00

(10C)12,00(10A) 15,00

PRY(10A) 15,00

(10D) 8,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(10B) 15,00(10B) 15,00

Difference in finished products of raw material consumption and activity:Raw mat.: R$ 3,00Activity : R$ 1,002 products sold = R$ 4,00 X 2 = R$ 8,00

(3) 25,00

(7) 5,00(4) 75,00(8) 5,00

Production Order







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(1) 100,00 (1) 130,00

(1) 30,00

Raw Material Vendor

PRD or KDM

(2) 50,00

(2) 50,00

Consump. Raw Mat.

(4) 75,00

Finished Products

(5) 30,00

(5) 30,00

CGS

Cash / Banks

(6) 30,00

(7) 5,00

PRV or KDV(9) 15,00

(9) 15,00

(10C) 12,00

(10D) 8,00

(10C) 12,00(10A) 15,00

PRY(10A) 15,00

(10D) 8,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(10B) 15,00(10B) 15,00

(3) 25,00

(7) 5,00(4) 75,00(8) 5,00

Production Order








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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00 (4) 75,00 (5) 30,00

(5) 30,00

CGS

(6) 30,00

(7) 5,00

PRV or KDV(9) 15,00

(9) 15,00

(10C) 12,00

(10D) 8,00

(10C) 12,00(10A) 15,00

PRY (10A) 15,00

(10D) 8,00

(6) 30,00

Actual Planned

Cost center

(3) 25,00

(7) 5,00

(10B) 15,00(10B) 15,00

(3) 25,00

(7) 5,00(4) 75,00(8) 5,00

Production Order

Debit = R$ 145,00Credit = R$ 145,00

Raw Material Finished Products Cash / Banks Vendor

PRD or KDM Consump. Raw Mat.








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This document is property of Softtek®.This document is property of Softtek®.

Divulgation and copy is prohibited without written permission of Divulgation and copy is prohibited without written permission of Softtek®Softtek®

CopyrightCopyright 1998 - 2004 Softtek® All Rights Reserved 1998 - 2004 Softtek® All Rights Reserved

Material Ledgerwith Work in Process

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Material Ledger with WIP Data for Simulation: Standard Price (Raw Material) R$ 10,00

Finished product = R$ 15,00Planned rate for the activity R$ 5,00 / h


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(1) 100,00 (1) 130,00

(1) 30,00

Raw Material Vendor

PRD or KDM

In buying the new price has an increase of R$ 3,00 by unit.This difference will be posted in PRD10 x R$ 3,00 = R$ 30,00


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(1) 100,00 (1) 130,00

(1) 30,002 – Consumption of 5 pieces

(2) 50,00

(2) 50,00

Consump. Raw Mat.

Consumption of 5 unities with standardprice of R$ 10,00 to the production order

Raw Material Vendor

PRD or KDM1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00

Vendor

(2) 50,00

(2) 50,00

3 – Work hours allocated

Production Order

Actual Planned

Cost Center

(3) 25,00

(3) 25,00

5 work hours pointed to the order5 h x R$ 5,00 = R$ 25,00

Raw Material

PRD or KDM Consump. Raw Mat. 2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,004 – Appointing the Order: 4 pieces

(4) 60,00

(4) 60,00

Finished Product

Actual Planned

Cost Center

(3) 25,00

Deliver of 4 pieces of finished products to stock:Standard unitary cost Raw Mat. 10,00 +Activ 5,00 /H

4 pc x 15 = R$ 60,00

1 unity of Raw Mat. still in the orderR$ 15,00

Raw Material Vendor

PRD or KDM Consump. Raw Mat. Production Order

3 – Work hours allocated2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00

(4) 60,00

5 – Sell 2 products

(5) 30,00

(5) 30,00

Actual Planned

Cost Center

(3) 25,00

CGS

Stock: 2 pc

Sell 2 finished pieces at unitary cost of R$ 15,00

Raw Material Vendor


Finished Product

4 – Appointing the Order: 4 pieces3 – Work hours allocated2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00 (5) 30,00

(5) 30,00

CGS

6 – Wages payment

Cash / Banks

(6) 30,00

(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

Raw Material Vendor


Finished Product

5 – Sell 2 products4 – Appointing the Order: 4 pieces3 – Work hours allocated2 – Consumption of 5 pieces1 – Buy 10 pieces at R$ 13,00


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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00 (5) 30,00

(5) 30,00

CGS

(6) 30,00

7 – Rate revaluation going from R$ 5,00 to R$ 6,00 per hour

(7) 5,00(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

Revaluation made in the closing of Mat. LedgerWith reference to the 5 consumed pieces.5pc x R$ 1,00 = R$ 5,00

Raw Material Vendor


Finished Product Cash / Banks

6 – Wages payment5 – Sell 2 products



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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00 (5) 30,00

(5) 30,00

CGS

(6) 30,00

(7) 5,00

8 – WIP calculation, differences andOrder Appropriation

WIP

WIP(8) 15,00

(8) 15,00

(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

Accounting of one productthat was not confirmed in the Order

Raw Material Vendor







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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00 (5) 30,00

(5) 30,00

CGS

(6) 30,00

(7) 5,00

WIP

WIP(8) 15,00

(8) 15,00

9 – Single-level to Multi-levelDifference in Raw Mat. That was consumed by the OrderPRV or KDV

(9) 15,00

(9) 15,00 (4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

This operation is done in the material ledger closing

Raw Material Vendor








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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00 (5) 30,00 (6) 30,00

(7) 5,00

WIP

WIP(8) 15,00

(8) 15,00

PRV or KDV(9) 15,00

(9) 15,00

10 – WIP calculates and post a document then

WPAWPM

(10) 1,00(10) 3,00

PRM PRA(10) 1,00(10) 3,00

(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(5) 30,00

CGS

Difference, in order, In buying raw material and activityRaw Mat. R$ 3,00 e Activ. R$ 1,00

Raw Material Vendor



9 – Single-level to Multi-levelDifference in Raw Mat. That was consumed by the Order






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(1) 100,00 (1) 130,00

(1) 30,00 (2) 50,00

(2) 50,00

(3) 25,00

(4) 60,00 (5) 30,00

(5) 30,00

CGS

(6) 30,00

(7) 5,00

WIP

WIP(8) 15,00

(8) 15,00

PRV or KDV(9) 15,00

(9) 15,00

WPAWPM

(10) 1,00(10) 3,00

PRM PRA(10) 1,00(10) 3,00

11 – Closing posting

(11C) 8,00

(11D) 8,00

(11C) 8,00(11A) 15,00

PRY(11A) 15,00

(11D) 8,00

(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(11E) 3,00

(11E) 3,00

(11F) 1,00

(11F) 1,00

(11B) 15,00(11B) 15,00

Differences in finished productsof raw mat. consump. and activity:Raw mat.: R$ 3,00Activity : R$ 1,002 products sold = R$ 4,00 X 2 = R$ 8,00

Raw Material Vendor










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(1) 100,00 (1) 130,00(2) 50,00 (4) 60,00 (5) 30,00 (6) 30,00

WIP(8) 15,00

WPAWPM

(10) 1,00(10) 3,00

(11C) 8,00(11A) 15,00

(1) 30,00 (2) 50,00 (3) 25,00

(5) 30,00

CGS

(7) 5,00

WIP(8) 15,00

PRV or KDV(9) 15,00

(9) 15,00

PRM PRA(10) 1,00(10) 3,00

(11C) 8,00

(11D) 8,00PRY(11A) 15,00

(11D) 8,00

(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(11E) 3,00

(11E) 3,00

(11F) 1,00

(11F) 1,00

(11B) 15,00(11B) 15,00

Raw Material Vendor











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(1) 100,00 (1) 130,00(2) 50,00 (4) 60,00 (5) 30,00 (6) 30,00

WIP(8) 15,00

WPAWPM

(10) 1,00(10) 3,00

(11C) 8,00(11A) 15,00

(1) 30,00 (2) 50,00 (3) 25,00

(5) 30,00

CGS

(7) 5,00

WIP(8) 15,00

PRV or KDV(9) 15,00

(9) 15,00

PRM PRA(10) 1,00(10) 3,00

(11C) 8,00

(11D) 8,00PRY(11A) 15,00

(11D) 8,00

(4) 60,00

(6) 30,00

Actual Planned

Cost Center

(3) 25,00

(7) 5,00

(11E) 3,00

(11E) 3,00

(11F) 1,00

(11F) 1,00

(11B) 15,00(11B) 15,00

Debit = R$ 144,00Credit = R$ 144,00

Raw Material Vendor











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Accounts Description

UMB: Posted when the new cost calculation is liberated. The difference between standard price and average price is handled in the closing period like the account PRD.

PRD: Posted when the material price operation is different of the standard price, in case of raw material and purchasing operations and in the case of finished products and semi finished products the price difference is between the activity planned value and the actual activity price.

KDM: Represented by the same PRD operation but only handling with prices differences in the second or third currencies configured in the ML. (can be used the same account of PRD)

PRV: Price differences of raw material that was consumed for the production of semi-finished and/or finished products. In the first moment the system only calculates the value to be accounted and in the moment of the closing post this operation. (Create new accounts – can utilize the PRD accounts as models)

KDV: Represented by the same PRV operation but handling only with price differences in second or third currencies configured in ML.(can be used the same PRV account)

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PRM: Difference referring to the raw material used in production order that did not go to stock, characterizing WIP (work in process).(Create new account – can be used a PRD account as model)We suggest the creation of one account only

WPM: Counterpart of PRM operation. In the closing of next period the system verifies the WIP balance that stays in the order and in the case the order has been closed the system reverses the previous document and keeps all price differences to be accounted in stock or CGS.Obs: WPM should be created as patrimonial account. We suggest the creation of one account only.

PRA: Difference referent to the activity value utilized in the production order that was not delivered to stock, characterizing WIP (work in process).(Create new account – can use PRD as model)We suggest using only one account)

WPA: Counterpart of PRA operation. In the closing of next period the system verifies the WIP balance that stays in the order and in the case the order has been closed the system reverses the previous document and keeps all price differences to be accounted in stock or CGS.Obs: WPA should be created as patrimonial account. We suggest the creation of one account only.


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PRY: Accounting of price difference balance in the operations of single-level difference, multi-level or WIP, versus stock (raw material, semi-finished or finished products) or CGS in the case the materials were sold or consumed.(Create new accounts – can be used PRD accounts as models)

COC: Accounting values of outgoing materials, for selling or consuming in cost centers and these operations are not configured in the system in the material ledger to recognize each operations origin.(Creation of new accounts – can utilize PRD accounts as models)

The balance of accounts referring to operations UMB, PRD, KDM, PRV, KDV, PRM, PRA and PRY should be zero. We suggest the creation of Cost Element for all accounts used in these operations. This will be helpful in the Material Ledger analysis. Should also be created a new Cost Center for register the accounting of these accounts in CO.

All the operations registered only inside the period will have consistency in the closing process. Operations realized in the current month, with system date of the previous period can have values that could not be handled in the current period.


Brazilian material ledger

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Transcript of Brazilian material ledger