Raw material to Product conversion

Teagan
Teagan Member Posts: 6 ✭

I am looking at moving our accounting file over to Reckon Hosted, but before I do I need to know that Reckon can handle our control control correctly first.

I am using the 30 day trial to check how this all works. Our scenario is as follows -

We use Raw materials to make a product that we then onsell. I l have set up inventory items for both the Raw Materials and the finished Products.

  1. Do I need to convert the raw materials into the product to correct the inventory to sell the finished product?
  2. During the process of converting the raw material into our finished product , we incur a 3% loss in material. How do i account for this?
  3. Do i need to do anything else to set up the stock control properly?

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,181 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Teagan

    "... l have set up inventory items for both the Raw Materials and the finished Products ..."

    You would only set up Inventory Items for your Raw Materials, otherwise the system thinks BOTH (Raw Materials & finished Products) are separate & you'll be doubling up on your Raw Material quantities!

    You then create Inventory Assembly Items. These are then "built" from your Raw Materials & can include any Item Types including Services (eg for labour hours required to make the Products), Other Charges etc.

    Reckon Accounts is then able to track BOTH your Inventory (Raw Material) quantities (including those used in Assembly Items) AND Inventory Assemblies (finished Products) & you can set your Preferences to notify you when any components are running low & need to be re-ordered. It will also tell you when/how many Inventory Assembly Builds you can create 😊

    The Help files within the program are very detailed & can be accessed in numerous ways - Each window has an Ask box where you can enter a specific question relating to that window. This takes you to the Help section on that topic. Next to that is also a How Do I? dropdown containing common question that people have in that particular window:

    In addition, you can also open the Help section directly via the Help dropdown:

    You can use either the Index or type directly in the Search tab:

    If you have a read of the info there on assemblies, that will provide you with very detailed explanations 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)