In my previous post, I describe all G/L posting results when we do with production, but using FIFO costing method. It this new example, I will describe results of posting when we have finish goods with Costing Method configured as Standard.
In this case, we use the same flow chart for posting groups, as I have described in my previous post.
In this example, when we post consumption and output, we will get following entries in G/L Ledger. In this case, we will get entries from cost of Item consumption and cost of Work Centers using, and value for output Item based on Standard Cost:
When we change status of Production Order to Finished, we will get additional G/L Entries. These are correction of standard cost on output Item and variance from standard to actual cost. You can find these entries in next table: