Control Accounts in MISys Manufacturing Software

The purpose of today’s blog post is to provide some clarification on exactly what these control accounts are for and when are they used in transactions – “Scrap Adjustment” will also be included.

A grid describing each of those control accounts is below:

You’ll note that “At Period End” PO Receipt Control and Sales Transfer Control accounts should have a ZERO balance. This is because they are the control accounts that are used when conducting transactions that have an instant impact on the GL, which is why it is important to keep these control accounts as independent accounts. One side of the control account is kept in MISys, the other side in the accounting package. When a period end is done, the balance should be zero – if not, then it should warrant an investigation.

Dispense/Return Control and Scrap Adjustment are essentially the same thing but serve two different reporting purposes – Both Accounts represent the removal or inventory.

Dispense/Return Control is conducted through the stock control function – where product can be written off or returned to stock. The same can happen for Scrap Adjustment in the Scrap function of the stock control module. More importantly, scrap can also be used when processing manufacturing orders parts that are broken or don’t pass quality control can be specifically scrapped and later reported on in the costing of that production.

If your production line has a high rate of scrap, and it is something you want to keep track of – it is important to keep this account independent of others.

Miscellaneous Item Receipt Control is used when MISC items are received and not specifically coded against an expense account. It will remain in that control account until that MISC Item is invoiced.

Resource Transfer Control – not widely used; but can be useful if tracking R&D is important. For further information on best scenarios to transact or keep track of these costs, please reach out to one of us.

If you have any questions about the control accounts, please feel free to reach out!

Dean.