Chapter 6. Landed Costs, Production, and Sales Activities

Procurement activities and payment to vendor topics have been covered in the previous chapter. We also already know about the accounting facts or GL journal entries generated related to those activities.

In this chapter, we will discuss how to handle all of the charges related to raw material procurement in the Landed cost section. With the availability of material in-house, we can manufacture our goods, and sell these finished goods to our customers.

In this chapter, we will discuss and practice the following:

• Landed cost

• Manufacturing finished goods—shirts

• Quotations

• Sales orders

• Dispatching finished goods to customers

• Receiving payment from customers

• Reconciling the bank statement with regard to customer payment

• Handling direct sales

We will activate the accounting processor, and explain the accounting facts/GL journal entries generated, wherever applicable.