Re: Journal Entry for Cost of Sold for Direct Materials/Factory Supplies

Hi Dhana K,

Yes we have already produced direct materials, but due to excess volume, these are sold as is (direct materials) instead of processing it into finished products.

Here is the current entry:

For Inventory Posting

For Delivery Note Posting

However, the accounting will have to make a subsequent MANUAL entry for this

Debit            Others(Revenue)               xxxx

Credit                    Cost of Sales                    xxx

To eliminate this MANUAL entry, Accounting suggest if we can have an AUTOMATIC entry like this:

Debit             Raw Material                    xxx

Credit                     Others(Revenue)              xxx

Do we need to have another posting key?valuation class?

Thank you & Best Regards,

Athena