Accounting adjustments in manufacturing process

Hi All,

I’m currently working in the configuration of the manufacturing module of ERPnext for my company. In the process I am coming up with some unexpected questions / issues for which I would be very thankful to get any advice.

Situation is as follows:

When finishing a work order to manufacture X items, and completing the material receipt from Manufacture. Then checking the Accounting Ledger of the Manufacture Stock Entry I find out that the cost allocation is correct - Inventory Costs have correctly moved from Material in Process to Inventory in Hand + production costs correctly allocated in the Production Costs Account.

However, in addition to this, ERPnext appears to be allocating Material in Process’s value to the Item’s Default Expense Account as a Cr and then compensating this in the “Inventory Adjustments” Account.

Whenever I remove the Default Expenses Account from the Item’s definition, this stops happening and the Account Ledger is perfectly calculated with no additional adjustments associated to the Default Expense Account.

I still haven’t figured out the reason why this is happening, nor the way to avoid this “misadjustment” without removing the Default Expenses Account from the item’s definition (which of course I need for other documents such as the delivery note).

Any advice or light on this topic would be very much appreciated!


What is the issue actually? That you don’t understand how this works or there is something wrong with it? What do you expect to happen? Can you post ledger screenshots? Thanks

Ps: this will help you get more responses.

1 Like

Indeed, this is not what I would expect to happen. So i am seeking to understand the reason why this is happening.

Some screenshots below:

This is they way it’s currently happening and what I dont understand…

PS. thanks for tip!

This is what I would expect it to look like after the manufacturing process is ended:

What version of Frappe & ERPNext?

1 Like

Hi !! thanks for follow up - v13.4.1 it´s the version