We are running an oil manufacturing company which is located in outside India… We are purchasing our raw materials(Copra) from local farmers…
Anyone kindly advice how to account the Purchase of Copra which to begets hit in Purchase, cash account and Stock… What kind of entries to be passed… Will be grateful if advice happens in stepwise… I’m new to accounting field…
Here are the steps.
- Create Purchase Order for the raw-material item.
- Create BOM for Oii (finished item), Select Copra as raw-material item.
- Crate Production order.
For the detailed help on how to complete manufacturing, check these help videos.
Thak you for your reply,
Our raw material is copra and finished goods are oil & copra cake, here there are two outputs. kindly advice how to create BOM & production order.