Handling Custom Mix Costs

The Following procedure will help to isolate the Custom Mix cost so that it can be corrected.

1. In "Chart of Accounts Entry" in GENERAL LEDGER (8.4.1) create a different GL account for Inventory and Cost of Goods Sold for Custom Mix Part Numbers.

2. In "Inventory Entry" in INVENTORY (5.1.1) enter the Inventory and Cost of Goods account into each Custom Mix Part Number. Enter <G> at the bottom of the screen to enter GL Accounts into Inventory and Cost of Goods. You will want to fill in the Return Mdse and Warranty accounts also.

3. Every month run the "Custom Inventory Sales Analysis" report in SALES MANAGEMENT (2.1.6) to get the Cost of Components being costed out through "Component Use of Inventory" in INVENTORY (5.4.5). This assumes you are downcounting your components properly.

4. Then create 2 "Journal Entries" in GENERAL LEDGER (8.1.1):

One to reverse the cost from the two Custom Mix GL accounts back down to 0. Debit the Custom Mix Inventory Account and Credit the Custom Mix Cost of Goods Account. Get the amount from either the Custom Mix Inventory or Cost of Goods Account for the period. The two accounts will be the same amounts since you are not dealing with sales, but inventory costs. They will cancel each other out back down to $0.

Second, using the Cost from the "Custom Inventory Sales Analysis" report in SALES MANAGEMENT (2.1.6) or "Print Posted Component Use Summary Report" in INVENTORY (5.4.5.5), Debit the regular Cost of Goods Account and Credit the regular Inventory Account.