The PEAK program supports businesses in the buy-sell and service industries, but it does not fully support manufacturing businesses. However, if you wish to use it, you can follow these steps to apply it:
Step 1: Set up product accounting structure.
Step 2: Proceed with raw material procurement.
Step 3: Perform stock cutting of raw materials for the production of finished goods.
Example: Assembling a wooden chair requires the following components: wood, nails, and labor cost.
Step 1: Configure the relevant product account structure. If you want to record the production line, the first step is to configure the product accounts according to your needs.
Based on the example provided, the product "Wood" and "Nails" are considered raw materials. The account mapping can be done as follows:
Record Purchase Account = Raw Material Inventory
Record Cost of Goods Sold Account = Production Cost
Once you have entered the information, click "Save" to proceed.
Step 2: Purchase Raw Materials
Go to the "Expenses" menu, select "Record Purchase," and click on "Create."
Fill in the required details as needed. Once you have entered all the necessary information, click on "Approve Purchase" to proceed with the purchase of the goods.
Note: If you purchase raw materials separately or have separate documents, please record them separately according to the documents.
Record Purchase
Example of Accounting Record.
Step 3: Cutting Inventory for Production
Example:
Components of a Wooden Chair: 1 unit
Wood: 5 pieces, priced at 150 baht per piece.
Nails: 2 boxes, priced at 50 baht per box.
Labor Cost: 1,000 baht.
Step 3.1: Cutting Raw Materials from Stock. Go to the "Revenue" menu. Select "Receipt" and choose the "Create" option
3.1.1. Customer/Payer: You can specify the name of your own business or create a new contact as "Used for Production".
3.1.2. Issue Date: Specify the date when the items are taken out of stock for production.
3.1.3. Document Number: The system will automatically generate a document number based on the configuration settings. However, we recommend creating a separate document number for production purposes to differentiate it from sales documents. This will help when pulling sales reports to identify which documents are sales-related and which documents are used for production purposes.
3.1.4. Category Group: This is for categorizing the documents to facilitate easy data viewing.
3.1.5. Product/Service Field: Fill in the desired information.
Product Code Used for Production: Enter the code of the raw material used for production.
Quantity: Enter the quantity of raw materials used for production.
Price Field: Specify the amount as zero.
Tax: Indicate that there is no tax.
Once the information in the receipt document has been provided, click on the "Approve Receipt Document" button.
Example of Accounting Entry:
After the raw materials have been used in the production process, there may be additional expenses incurred during the manufacturing process, such as labor costs.
Example of Accounting Entry:
Step 3.3: Recording the Finished Product from Assembled Raw Materials
After the raw materials have been used to assemble the finished product, you need to record the total cost associated with it. Follow these steps:
From the example, the wooden chair assembly will consist of the following components:
Wood: 5 sheets, priced at 150 baht per sheet, totaling 750 baht.
Nails: 2 boxes, priced at 50 baht per box, totaling 100 baht.
Labor cost: 1,000 baht.
Total cost: 1,850 baht.
Advanced payment: Select the same account structure that is associated with the cost recording to offset the accounts.
Example of Accounting Entry:
Example: Raw Material Inventory Movement Report
Example: Finished Goods Inventory Movement Report
-End of Applying the New PEAK production line-