Lesson 49 of 64
Stock, finance & operations
Review costing policy and close manufacturing cost
Review actual materials, labour, overhead, finished goods and work in progress before posting a period close.
Before you begin
Complete production and material reviews, verify factory costs and use the mode and permissions that enable costing tools.
Step by step
- Open Advanced Costing where available and review the saved provisional or actual policy and variance allocation before changing it.
- Prepare the manufacturing close for the exact period and review the posted source records Feemo collects.
- Inspect opening WIP, material cost, direct labour, overhead and finished goods already posted. Enter ending unfinished work only when supported by evidence.
- Review the variance preview and affected accounts or inventory allocation. Resolve source gaps before confirming the close.
- Post the approved close once and inspect its status, journal and source links. Recheck final cost reports for the same period.
Check the result
Sources, WIP and variance should reconcile and the close must not duplicate a prior posting.
Common question
Can an estimated batch cost be treated as final period cost?
Review the posted costing policy and actual close. Final treatment depends on actual sources, WIP and variance allocation.