Data transfer of Ice Cream factory

[ash1474]

Hi !

I work as accountant in ice cream factory. I have manual data(sale,purchase and assets etc) of previous months now we have bought quickbooks enterprise
and i want to transfer all my manual data to it.
Can anybody guide the me the main steps or simply give me helpful links to start

Thanks

[Wartrace]

Yes, you would enter all balance sheet accounts as of the day before the start of your fiscal year against the opening balance equity account WITH THE EXCEPTION of open invoices, payables, inventory and bank account. You would enter all open invoices/payables as individual transactions dated as the original date using the original items. (if you want detail) You would enter the bank balance as of the last bank statement and then add all uncleared bank transactions since the statement ending date. You would enter inventory quantities and values individually using the day before your fiscal year starts in QuickBooks. You close out the opening balance equity against retained earnings and it should match the trial balance from the previous accounting system as of the first day of the current period.

If you are starting mid fiscal year you would either enter all transactions from the beginning of the year or use monthly journal entries and just enter open transactions.

[ash1474]

Thanks for the reply...Part by part some how i managed to enter the accounting data in quickbooks...still a lot of data need to be entered..

Another question
I searched and read most of the posts regarding inventory/assembly still i am confused...Can i use quickbooks without any add on for our factory.

We make five flavor of ice cream. In all of them the raw material is same except few things like cup cone stick and color etc..what we purchase are in bulk like milk powder, sugar, oil and chocolate etc.

if it is possible please give me a simple example how can i make one unit of ice cream..


Thanks

[Wartrace]

I am assuming you are using the premier manufacturing/Wholesale edition that includes multiple units of measure.

What you would need to do is determine the lowest unit of measure you use in your operation. For instance "milk"- You might buy milk in 1000 gallon lots but only use it on a per gallon unit in your assembly. Make sure you use the multiple units of measure to assign the proper amounts.

I would also consider how you sell your product. If you sell finished goods by the case it might be a good idea to create assemblies by the case. If you do it this way you would be able to capture the costs of packaging instead of just the individual unit .

Lets say a case of ice cream cups consists of 24 cups of ice cream. You should have a standard recipe for each flavor and that would allow you to assign the raw materials to that assembly (Milk, sugar, flavoring) on a fairly consistent basis. You would assign 24 cups to the assembly and one "case" that you package the 24 cups in.

This is only going to capture the costs on direct material of the assembly. You have other costs that are inventoriable such as direct labor, indirect labor, variable overhead and fixed overhead.This is where the add on type of program would be helpful

You could use a manufacturing control account that had sub accounts for each cost. This would be a COGS account used to assign these costs to your assemblies. This is where it gets kind of tricky because you will need to determine how to allocate costs to each assembly AND make sure whatever costs you do assign to inventory are allowed by GAAP. To further complicate things you would have to create units of measure that are useful in assigning costs to assemblies.

Lets just look at direct labor costs. Instead of directing your direct labor to a labor expense account it would go to the manufacturing control >direct labor account. When you create an assembly you would allocate X amount of direct labor to the assembly. This would credit the Manufacturing control>direct labor account and debit the inventory asset account.

At the end of the year/period you WILL have a balance in the manufacturing control account. If it is immaterial you would just assign it to COGS, if it is material you would allocate it between the finished goods inventory, WIP inventory and COGS.

[ash1474]

Thanks for the very precise assembly process..Every line you wrote needs to be explored especially unit of measure...I will to go through each raw material purchased and its quantity used per case/finished good and apply the formula as per your guideline ....

Again thanks a lot for helping