I have a question for manufacturing of raw material.
when we make a production order of an item which is finished goods of this process and raw material for next product system is giving fore line entry at the end in which it uses cost of goods sold GL accounts which are Raw material consumed and finished goods consumed.
In start of the process the first entry is below;
W.I.P Account Dr.
Raw Material stock Cr.
when we finish the production the entry will be as under;
Raw Material for next process Dr.
Finish Goods Consumed Dr.
Raw Material Consumed Cr.
W.I.P Account Cr.
The problem is in 2nd entry that it should be;
Raw Material for next process Dr.
WIP Account Cr.
why system is make four lines entry instead of two line as written above. and what will be the soluction for the same.