Accounting in production – 1Ci Support

Registering employee output

You can register output of enterprise employees performing production jobs (work orders) and general production operations in the documents available at Manufacturing – Labor costs – Employee output.

Employee output registration is a background job and is performed within month-end closing procedure (Financial result and controlling – Month-end closing – Month-end closing). Click Register to register employee output automatically according to the set parameters of production departments. The completeness of employee output is displayed in the info message to the specified background job.

By clicking More in the month-end closing procedure, you can navigate to the Employee output workplace. On the To register tab, you can see a list of references to register output for the specified month.

By default the output is registered according to the production department settings. If necessary, you can change the grouping of performed works by periods (one document per day, month, or arbitrary period) specified for a department in the Employee output workplace. In this workplace, you can also specify the registration date to set the output accounting period for payroll calculation (current date or work performance date). If you enable the Expand by assignees and references mode, you can view information on assignees and go to the work reference by clicking a corresponding link.

The Employee output documents are work orders. Depending on the Work order kind attribute value, the documents are registered as Personal if works are performed by individual employees, or Team if organized teams are hired to perform works. Work order kind defines attribute components and population of the Employee output document.

If you register a Personal work order, work kinds on the Performed works tab of the Employee output document are distributed among employees with specified assignee qualification, labor costs, work kind rates, cost of works and reference, according to which they were performed. When creating a document, the minimum required qualification category is selected by default. You should change the category if works are performed by an employee of another qualification. Rates are applied and cost of performed works is calculated according to the specified categories.

If you register a Team work order, specify Team and parameters of work cost allocation among team members (LPR, hours worked, tariff rates) on the Main tab of the Employee output document. By default, work cost allocation parameters are set according to the settings selected in the department document but a user can refine them. Team members are selected based on the previously entered Employee output documents. On the Performed works tab, labor costs, rates, work cost and their references are specified by work kinds. On the Employees tab, the cost of performed works is allocated by workers – team members in accordance with document parameters. Team members specified in the document can be used for output registration in the following periods.

All output of employees including repairs and other works is registered in the infobase based on the production stages or production without orders.

By using the Employee output document, you can perform the following tasks:

Output accounting – you can analyze actual load of each employee without limitations by performed works regardless of labor compensation plans.
Wage arrangement – work orders are assigned to employees calculated by standard work cost. You can use this information for salary calculation. In real-time accounting, base of itemized expense allocation is generated by labor compensation considering participation of each employee drilled down by:
- Manufacturing process stages – output registration is available for fully or partially fulfilled stages. This allows you to correctly accrue salary by stages fulfilled during transition of accounting periods of compliance accounting.
- Released products, performed works (released without production orders).

Create the Employee output documents for actually performed works during an accounting period.

In the Manufacturing – Labor costs – Employee output workplace:

Already registered documents are displayed on the Employee output tab.
On the To register tab, you can see a list of work kinds for which registration is required. If you display release without production orders, you can register output within the volume of labor costs previously specified in the Production without order (Production management, version 2.2) or Product release and work performance (Production management, version 2.1) release documents. In this case, labor costs cannot be transferred to the following accounting period.

Version 2.2. Shop storeroom inventory

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

The records of material movements in a shop storeroom are mostly kept according to the warehouse accounting rules. Advanced warehousing is not applied. Inventory in shop storerooms is replenished by the standard demand fulfillment tool—the Transfer supply type according to which the Order for materials for production documents are created. All materials delivered to a department according to the manually created Material transfer to production and Goods transfer documents are also recorded in shop storerooms.

There is an alternative usage option for inventory in shop storerooms. You can use materials for demand fulfillment of different production processes performed by a department, return them to a warehouse, or transfer them to another department.

You can register the following goods and materials movement kinds in the Product and material movement documents (document name depends on the document transaction):

Material transfer to storeroom – material transfer from a warehouse to a shop storeroom. Transfer can be made without a reference or according to the Order for materials for production documents.
Material transfer to production – material transfer from a warehouse to a department to perform a specific production stage.
Transfer of products from storeroom – transfer of previously manufactured products from a shop storeroom to a warehouse.
Transfer of products from production – transfer of previously manufactured products from a department to a warehouse.
Transfer of semi-finished products – transfer of materials and semi-finished products between shop storerooms of one shop or different shops.
Transfer of semi-finished products between branches – transfer operation of semi-finished products between branches. Registered without references. If semi-finished products are transferred between branch offices, storerooms act as a sender and recipient at the same time.
Return of materials from storeroom – return of materials from a shop storeroom to the warehouse. Registered without references.
Return of materials from production – return of materials received for stage fulfillment from a department to a warehouse. You can return materials of the Production stage documents in the Started and Completed statuses. All returned materials must be previously specified in the Unused materials tabular section on the Consumption of materials and works tab.

You can register all movements of tangible assets from and to the shop storeroom in the Warehouse and delivery – Internal goods transfer – Internal documents (all) – Goods transfer documents. Postings generated according to this document type are similar to the postings of specialized documents, except you cannot specify dimension of production costs there, for example, product group (type).

You can write off and record storeroom inventory as received by production documents if execution department storeroom is specified:

Stocktaking of remaining tangible assets in shop storerooms is carried out in the Manufacturing – Intrashop accounting – Allocation of materials and works workplace.

Version 2.2. Pegged materials in unfinished production

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

Materials received from a warehouse by the target method for specific production order steps are not displayed in shop storerooms. In unfinished production, they are recorded on pegging basis for the assignment which is a production stage. Material receipt is registered in the Manufacturing – Intrashop accounting – Invoices for registration workplace on the Transfer to production/storeroom tab. These materials are not displayed in department shop storerooms. Usage of stage materials is controlled in the Production stage documents by the Control of product and material flow context report.

Version 2.2. Consumption of materials for stage completion

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

Demand for materials is specified on the Supply with materials and works tab in the Production stage documents. If you select the Ship action, the supply warehouse (the Warehouse field) specified for a material item is analyzed.

If you specify a shop storeroom in the Warehouse field, the material required to complete a stage can be immediately written off from the shop storeroom balance (shop storeroom stock is replenished independently not depending on any stage).

If you specify an ordinary warehouse in the Warehouse field, a reference for material transfer from the warehouse is generated. You can fulfill this reference on the Transfer to production/storeroom tab in the Manufacturing – Intrashop accounting – Invoices for registration workplace. Specify the warehouse from which materials are transferred in the supply schemes for production departments.

For each material planned for supply, you should specify whether it was consumed during stage execution or not. This is a required condition to complete the stage. You can record material consumption during stage execution. There is a Consumption of materials and works tab in the Production stage documents with the Started or higher status. There are two tabular sections on it that you can open by clicking the links: Consumed materials and works, Unused materials. The number of lines in each tabular section is specified in brackets.

You can fill in tabular sections manually or using the filling service. For example, if you click Fill in – Fill in with shipped ones in the Consumed materials and works tabular section, all items from the Supply with materials and works tab with selected Ship action will be recorded.

For unused materials, specify a warehouse/shop storeroom for return, or select an option of writing off as expenses.

If you return materials to the warehouse, register the Return of materials from production document. For example, you can create it directly from the stage by clicking Create on the basis – Transfer unused materials.

If you return materials to a shop storeroom, return documents are not required. Recording materials as received to a shop storeroom is performed by the Production stage register record. You can use materials in a shop storeroom for the following stages, or return them to the warehouse by a separate transaction with the Return of materials from storeroom documents.

You cannot receive more materials from a warehouse than it is specified in the stage. You need to register an additional supply if material consumption exceeds the initially planned amount. Specify an additional demand fulfilled on a regular basis on the Supply with materials and works tab of the stage.

You can open the Control of product and material flow context report from the Production stage documents. This report allows you to control the receipt of materials from a warehouse and register return of unused materials to the warehouse.

Version 2.1. Registering release

The described features are available if you select Master data and settings – Master data and sections – Manufacturing – Production management, version 2.1.

Results of manufacturing process are registered in the Product release and work performance documents that can be created in two ways:

Against order – generated based on route sheets.
Without order – release record without production orders.

The main parameters of the Product release and work performance documents are:

Company is a business entity to record transactions in compliance accounting.
Department is a releasing department.
Release direction is determined automatically by supply method selected for released product:
- To warehouse is used for products released without a reference and those not being semi-finished products manufactured in the process. Specify a recipient in the Warehouse field.
- To department is used for semi-finished products manufactured in the process. Specify a recipient in the Receiving department field in lines of document tabular section. You can specify several receiving departments for a single document (for example, to record work release). Semi-finished product is transferred from a releasing department to a receiving department bypassing the intermediate warehouse.
Price type – price filter for products with fixed release cost. Cost of products with calculated release cost is defined by cost calculation.

You can see release results in the Manufacturing – Manufacturing reports – Shop management – Product release report. The report shows release volume of production departments for selected period of time and consists of three sections that complement one another:

Release for the period – volume of transfer of products and semi-finished products to recipients (warehouses and departments) is shown by release departments based on the Product release and work performance documents.
Release with write-off as expenses – selection of expense items according to which itemized expenses are generated.
Product release schedule variances allows you to detect variances from production schedule that appear during release registration:
- There are incomplete route sheets at the release stage (the Completed status is not set).
- Recipients do not match in the production schedule and in the Product release and work performance documents.
- There are route sheets at the release stage with the Completed status for which the Product release and work performance documents are not registered.

In the documents of product release to a warehouse or department, you can select assignment (pegging against basis orders):

Assignment is inherited from the order if products are released against a production order.
If goods are released to a warehouse without an order, you can select an arbitrary assignment or assignment of demand at the receiving warehouse.
If goods are released to a department without an order, you can select an arbitrary assignment.

In the release documents against production orders created based on other orders, product items with the Work product type are always pegged for basis orders.

Version 2.2. Registering release

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

Finished products as redistribution results are specified only at the final stage. Two tabular sections are available for the final stage on the Finished products tab in the Production stage documents: Products at the calculated cost, Side and intermediate release at fixed cost.

In the Products at the calculated cost table, specify the production instance separately for each released item by setting the Produced attribute and specifying the release date. You can specify the release date with one value for all lines of the tabular section (the Production in one day check box).

In the Products at the calculated cost tabular section, you can record product release to a warehouse or write it off as expenses (select a required option in the Release direction field). To transfer goods to a warehouse, you can select a warehouse or a shop storeroom in the Recipient field.

When selecting a warehouse, you can register product release directly from the stage by clicking Create on the basis – Transfer released products, or in the Manufacturing – Intrashop accounting – Invoices for registration workplace on the For transfer from production/storeroom tab.

If a shop storeroom is selected, products are recorded as received to a shop storeroom by the Production stage document register record. After that, you can transfer products from a shop storeroom to a warehouse by a separate transaction using the Transfer of products from storeroom documents. You can also transfer a product from a storeroom directly to the next department for further processing. To do so, you can use the Transfer of semi-finished products document which allows you to transfer a product to a shop storeroom of the receiving shop.

You can specify series for the stage products in advance.

You can register product release for all stages at fixed cost (so called side release) in the Production stage documents on the Finished products tab (the Side and intermediate release at fixed cost tabular section). Release is registered for transfer to an external warehouse, or remains in the shop storeroom, or is written off as expenses. You can select a required option in the Release direction field.

To control movements of products released by stages, you can use the Control of product and material flow context report available in the Production stage documents.

Version 2.2. Disassembling defective products into components

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

Some released goods are defective. Disassembly of defective goods can provide materials and semi-finished products suitable for further use.

You can record defective goods by product items (drilled down by defective goods) and by amount (total amount by cost items).

If you record defective goods by product items, the process is as follows:

■ Release of defective goods is registered in production documents (production stages, production documents without order) with the "To warehouse" release direction.
■ Release of defective goods is registered in production documents (production documents without order) with the "To warehouse" release direction.
■ You can separate defective goods from effective goods by using:
- □ A separate storage location dimension (storeroom or warehouse for defective goods) after release of defective goods or after quality control check (QCD identifies an item as defective and transfers it to a separate warehouse or shop storeroom).
- □ A separate product (for example, with "partially acceptable" or "not acceptable" quality mark) after release or after quality control check (QCD identifies an item as defective and registers it as damaged).
  - ■ Defective goods in a storeroom are registered on production accounts 20, 23, 29, and goods at a warehouse are registered on the GL accounts of warehouse inventory.
  - ■ To repair some defective goods, you can use Production order or record repair expenses to fix defects in the Production without order document. Costs are recorded on GL account 20, 23, 29 of the execution department.
  - ■ To repair some defective goods, you can record repair expenses to fix defects in the Production without order document. Costs are recorded on GL account 20, 23, 29 of the execution department.
  - ■ You can write off irreparable defective goods in a storeroom to the amount of manufactured products, or allocate them to expense items (account 28) in the Allocation of materials and works workplace.
  - ■ There is a combined option: defective goods are disassembled and checked for damage, some semi-finished products are written off as expenses, some products are fixed, and some are disassembled and returned to production as effective items. A separate production order is created to record disassembly of defective goods and some recyclable waste is written off to an expense item (account 28).
  - ■ Expense item amounts can be allocated to the cost of manufactured products or written off to the financial result.

If you record defective goods by amounts, the process is as follows:

■ Release of defective goods is registered in production documents (production stages, production documents without order) with the Write off as expenses release direction.
■ Release of defective goods is registered in production documents (production documents without order) with the Write off as expenses release direction.
- ■ To record defective goods on account 28, specify corresponding expense record settings in compliance accounting for the item.
■ Disassembly of defective goods can provide inventory suitable for further use. All expenses for disassembly are written off to the same item. You can record them as received at fixed cost on account 28 using the Other recording as received document with the Recording as received (by means of expenses) transaction type. Availability of the Recording as received (by means of expenses) transaction depends on the Recognize other income and expenses functional option. You can create the Other goods recording as received document in the Internal documents (all) workplace.

In the document header, you should specify:

□ Company
□ Expense department (contractor department of the production document that released defective goods and wrote them off as expenses)
□ Warehouse that receives inventory

In the document tabular section, specify cost and expense item to which a product belongs for each product recorded as received. Remaining amount by expense item can be allocated to the cost of the manufactured products, written off to the financial result, or left in unfinished production.

Version 2.2. Allocating general recyclable waste

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

Recyclable waste can arise during the manufacturing process, and in some cases it cannot be definitely linked to release of specific goods. For example, turnings from workpiece processing, cuttings from plasma cutting of metal. Such waste is recorded as received by its overall weight at a fixed price (possible selling price).

You can select any warehouses in the Recyclable waste allocation documents.

You can register movements of recyclable waste between departments via shop storerooms. Transfer of recyclable waste from a storeroom to a warehouse is registered in the Transfer of products from storeroom documents. If a transaction is recorded in bookkeeping, GL account of recyclable waste at a warehouse is determined by product settings, and credit account is specified in the department settings. Postings of "Dr 10 Cr 2X" type are generated. Cost of recyclable waste is calculated according to the price type selected in the Price type field on the Additional information tab.

You should subtract cost of recyclable waste from expenses related to the product release. Products from whose cost recyclable waste costs must be deducted are determined in the Recyclable waste allocation documents in the Manufacturing – Intrashop accounting – Register production without orders workplace. To do so, click Register manually – Recyclable waste allocation for the selected line of tabular section. Create a separate document for each recyclable waste item. In the Settings field, specify the Recyclable waste cost generation model for product items of recyclable waste. Make sure the Set up cost generation model check box is selected in the Release products at fixed cost form.

There are the following reversal options that can be applied together:

Acc. to rule – the process is similar to expense allocation according to rule with filters (the Acc. to rule tab).
By production batches – reversal is executed proportionally to the number of products registered for the reviewed accounting period in the Production without orders and Production stage documents.

The reversal results of recyclable waste costs are a part of the cost allocation procedure in unfinished production. That is why the Recyclable waste allocation documents are not recorded in compliance accounting.

You can also follow the scenario when you primarily register new recyclable waste in the department using the Recyclable waste allocation documents, and then register waste transfer from a storeroom to a warehouse. In this case, you can create documents of recyclable waste transfer to a warehouse on the basis of the Recyclable waste allocation documents.

Version 2.2. Release of recyclable waste using itemized expenses

Described features are available if you select the Master data and settings – Master data and sections – Manufacturing – Production management, version 2.2.

Auxiliary materials used in production are written off to expense items. Use of auxiliary materials can generate recyclable waste that must be recorded as received at a fixed cost at the expense of expense item amounts.

Example: solid oil in iron cans. When solid oil is used, empty iron cans are collected and sold for scrap metal. You need to record iron cans as received at a fixed cost at the expense of item amounts.

You can write off auxiliary materials to expense items by using the Allocation of materials and works documents.

To record iron cans as received at the expense of written off amount, register the Recyclable waste allocation document. You can create the Recyclable waste allocation document in the Production documents workplace.

Specify the following information in the document header:

Received recyclable waste, its dimension (characteristic, assignment, and series), quantity, and cost of recording as received.
Accounting company.
Receiving department.
Warehouse or storeroom of receiving department where recyclable waste is recorded as received.
In the Expenses tabular section, expense items are specified for the amount of recyclable waste recorded as received drilled down by expense departments.

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