Lesson 48 of 64
Stock, finance & operations
Review factory labour, overhead and periodic costs
Connect posted factory expenses to manufacturing cost classification without entering them twice.
Before you begin
Have posted salary or expense records and review manufacturing cost access and company policy.
Step by step
- Record salary, electricity, rent and other actual expenses through their normal accounting or payroll workflows.
- Open Factory Costs and review which posted accounts belong to factory labour or overhead.
- Classify the relevant factory accounts using authorised controls. Office expenses should retain their ordinary treatment.
- Where the current mode offers periodic cost controls, select the intended period and review labour, overhead and their source entries.
- Review allocation and production cost reports before cost close, tracing missing cost to its original posting or classification.
Check the result
Factory cost should be traceable to real posted expenses and not be duplicated as a second manual expense.
Common question
Does a cost classification itself pay a salary?
No. Classification identifies cost treatment; salary accrual and actual payment are separate workflows.