Forum Message

Chart of Accounts for a Manufacturing Business

Could you please tell me if it is possible to alter the chart of accounts to run a manufacturing business. I need to be able to show stock / purchase of raw materials and stock of work in progress, and stock of finished goods.


(I have been using Solar for 3 months now and find it very user friendly. Excellent product! )


Posted by Beverley Vernon on Aug 23, 2009 3:11 PM BST

Hi Beverley,

Glad to hear you like our software!

I have produced an example chart of accounts for a manufacturing business here:
http://www.solaraccounts.co.uk/forum/resources/manufacturing-example-chart-of-accounts.png

At the start of your financial period, create a General Transaction to transfer the balance from the 'Stock - Finished Goods' account to the 'Finished Goods - Opening Stock' account. Then do the same for raw materials and work in progress.

At the end of your financial period, create a General Transaction from the 'Finished Goods - Closing Stock' to the 'Stock - Finished Goods' asset account. Then do the same for raw materials and work in progress. (Note: this leaves the closing stock expense account balances negative - this is normal)

I hope this makes sense - please let me know if you need more information. Also, I recommend you check this with your accountant as he/she may prefer a different format or procedure.

Cheers,


Posted by Mark McLaren (Solar Accounts) on Aug 24, 2009 11:07 AM BST