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#accounting #manufacturing How to handle small batch R&D

  • 1.  #accounting #manufacturing How to handle small batch R&D

    Posted Jan 03, 2020 08:52 AM
    What are some of the ways that you use to account for, and handle, inventory when test batches consume actual stock?

    We are on NAV2015, and we are often researching competitive products; ergo, we test and run plant trials for test products which consume, in part, actual stock/inventory. I'm a bit in the fog about the best way to handle this situation.

    [Paul] [Cochrane]
    [IT Program Manager]
    [Columbus Vegetable Oils]
    [DesPlaines] [IL]
    Check out the Chicago UG LinkedIn Page

  • 2.  RE: #accounting #manufacturing How to handle small batch R&D

    Posted Jan 06, 2020 08:11 AM
    When we're testing stuff we setup new GL's outside the standard income statement and balance sheet and then new posting groups

    Mark Anderson
    Director of ERP Systems
    Clesen Wholesale
    Evanston, IL

  • 3.  RE: #accounting #manufacturing How to handle small batch R&D

    Posted Jan 06, 2020 11:11 AM

    It can be a pretty simple process, unless there is more info about what you are doing.
    But at it's core, I would suggest do the following:

    - Go thru and setup a BOM and FG to be used for all test orders
    - Create a production order and using the BOM and FG.  I would go thru and either manually assign the production order number or somehow flag it that it is a test run
    - Modify the Components screen to be what you want as far as the materials in the test run.
    - Process the batch as you would with the output going to your standard FG for test runs.
    - In the inventory adjustment, I would then write-off the test FG to whatever account you want it to hit.

    Now if you have different scenarios or more information to add about how you are doing the test run, feel free to present that and I may change my response based upon the new information.

    Paul Silvani
    General Manager
    Chicago IL

  • 4.  RE: #accounting #manufacturing How to handle small batch R&D

    Posted Jan 17, 2020 07:39 AM
    I agree with everything mentioned thus far.  I would add, complete this test in a new "location" so you can isolate all the transactions, inventory and accounting in one filter.  So this transaction does not pollute any reports you are running.

    Nirav Shah
    Solution Architect
    Advanced Jobs, Quality Management and Engineering Change Solutions

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