Understanding Cost Accounting
You should update accounting information either after you close operations or periodically. As you close operations, the system creates transactions for the operations. You can then create journal entries to capture costs as operations change the composition of bulk product and move costs between accounts.
When you set up the blend facility, you specified which accounting method, standard or operational, the facility uses. The accounting method determines the basis that the system uses when creating journal entries. When you use operational costing, the system calculates the lot costs and uses them as the basis for creating journal entries. The costs of the Before lot plus the costs of the operation become the costs of the After lot. When you use standard costing, the system uses the end-use reservation (EUR) standard cost as the basis for the journal entries. For example, a 100-gallon lot of bulk product has 100.00 USD of operational costs and belongs to the CABSAV EUR, with a standard cost of 5.00 USD per gallon. Using standard costing, the journal entries are for 500.00 USD (5.00 USD per gallon × 100 gallons). Using operational costing, the journal entries are for 100.00 USD.
Additionally, as operations remove material from the JD Edwards EnterpriseOne Blend Management system (sale of bulk product or bottling) and consume dry goods (additives and consumables), the system records these transactions in the Item Ledger (F4111) and Item Location (F41021) tables. You can access the item ledger transactions by selecting Item Ledger from the Blend Advanced Operations menu (G31B05).
Creating journal entries is the first step of a three-tier process. This process is used throughout all of the JD Edwards EnterpriseOne programs and includes these steps:
Creating journal entries in a batch.
Reviewing and approving general ledger batches.
Posting journal entries to the general ledger.