Manufacturing-Direct Costs

On the cost entry screen, you must choose between Fixed Cost per Quantity (variable) and a Standard Fixed Cost for Custom Cost Method. Provide the GL account to be credited with, for the Cost Component against Cost GL Account Type.Select the Work-in-Progress Inventory a/c for the Offsetting GL Account Type, as that is where all production costs are pooled.This account will be debited with the cost.

You can search and find all Cost Components on the Costs home screen.

The Cost Custom Method dropdown will show four methods related to Manufacturing – Direct Costs (2) and Indirect Costs (2). For the above illustration, we will choose Fixed Cost Per Quantity.

You can delete a Cost Component by clicking Remove against it in the listing