ACF2400 Lecture Notes - Lecture 10: Master Production Schedule, General Ledger, Production Planning
Document Summary
Errors in the pc can lead to: Goods not beling available to meet customer needs if the volume of produciton is underrestimated; or. Incur unnecessary inventory costs if production requirements are overestimated. All production activities and schedules must be authorised and approved. Inventory items (raw materials, work in progress and finished goods) need to be kept secure and used appropriately, and. All production runs need to be scheduled, conducted, recorded and cost accurately. Pc- links to other cycles & entities. Information about production cycle activities flows to other accounting cycles: Revenue cycle: sales orders, finished goods for delivery. Hrm cycle/ payroll sub-cycle: labour time in production. General ledger and reporting cycle: cost of goods. 4 basic business actitivites are performed in the pc: production design: Source documents: bill of materials and operations list: planning and scheduling: Source documents: master produciton schedule, production order, and materials requisition: production operations, cost accounting. General pc threats and controls: inaccurate/ invalid master data.
