P&L, B/S Presentation Co.Act Sch. v/s navision- India

pashya1972

Hi

As per Co.Act Schedule format (India) following accounts are reprented in P&L .

Op.stock of WIP
Op.stock of FG
Total

Less Cl.stock of WIP
Less: Cl.stock of FG
Total
Net Increase/Decrease in Stock of Finished Goods/WIP

My question is in Navision I ve found that above accounts do not represent in P&L items , instead following accounts are present.
1.Direct Cost Applied (Credit) i.e. Operation cost defined as per work centre
2. Cost of Goods Sold (avg cost of FG item at the time of Sale)

FG and WIP stock is appearing in B/s.

Now if we need to map the above i..e increase/decrease in WIP/FG items then how one can arrive at those fiugres or is there any work around to represent as per P&L format of Co.Act.

Or can we eliminate the following steps of accounting ?

COGS A/c
WIP A/c
FG A/c
Dir.cost applied (mfg operating cost)

In this case closing value and opening value journal entry (GL) will be passed at the month end. so that P&L can be prepared as per Co Act schedule format.

2. OR
If we pass journal entry at the month end then can these accounts will be nullified? or will there be diff.
COGS
Interim FG
FG A/c
WIP A/c
Direct cost Applied

Thanx in advance

Pash

ssingla

Firstly Schedule VI does not specify the method as narrated by you.
Secondly only the calculations are done differently but the results are the same. Accounting people can modify the same for the yearly reporting and in the normal usage, NAV method can be followed or you can customize the report.

The same is true to other ERP's also.

pashya1972

Thanks

However our presentation of accounts is in that fasion. Now if we want to map nav acc vs pl format. what r the effects? regrouping?

Pash

Alex_Chow

It's possible to setup the account schedule to the following:

Beginning Inventory
+WIP
+Purchases for the period
-Ending Inventory
-Ending WIP

---

=COGS

Is this what you need? If so, most US CPAs prefer to calculate COGS this way as well.

The COGS is a calculated value, not the value presented on NAV COGS. If you set this up correctly, the calculated COGS will match the NAV COGS.

This is a blog topic I'm writing about (unless someone beats me to it). Just in time for year end, I'm starting to get a lot of questions on this.

pashya1972

Thanx

Ok but what about direct cost applied account?? (op.cost defined on work centre)


Pash

Alex_Chow

The Direct Cost Applied account wouldn't be used in the account schedule.