Production costs - Cost management

1. Collection system 

The fee collection system applied by the production company established in such a way that it can be detailed, as follows:

1. The costs during the production process must be thorough and gathered to do the recording.
2. All expenditure costs must be during the production process is considered to include other purposes should review such that the possibility of  the production cost is reduced to semimonthly possible.
3. Record keeping and grouping to be classified costs, so that in the future the calculation in the production process can be known through bookkeeping appropriately.
4. Administrative expenses and sales still includes the cost of production.
5. With minimizing their costs in the production process so that the cost of goods sold semimonthly, so that sales of goods produced can compete.
6. Cost control to suit the purpose should be done against the elements of cost, so that the costs had been budgeted are used as efficiently as possible, because efficient that can boost profits.
7. To achieve the presence above it needs to be a good organization in the system of collecting costs production of goods so that there is a good internal control in the production process should be held separation of functions, among others:

1.  In Order

Implementation of the material is raw for smaller companies held one person only, whereas for large companies is held by one part of the production that involves some personal functions of the section are:

• Oversee all orders received
• Check mail orders received from subscriptions and complement which is still lacking.
• If the reservation of goods, must be requested approval from the warehouse.
• Specify the delivery date, make the letter delivery as well as the copies are minimizing command.
• Make records orders sent and orders been taken into account.
• Relations with the purchase, whether the goods are accepted already match the order still exist that need to be addressed.

2. Parts Warehouse

Part of this warehouse credit means involving the order in which each part delivery of the goods sold with an order is subject to approval from the warehouse make a note or card accounts receivable every subscription about the identity of the buyer, the amount of the order and period of payment. Sales invoice that is created by the orders and mail orders shipping or in send to part orders for approval or rejection and letter delivery orders. If there is agreement then the sales invoice and letter delivery orders awarded to part deliveries, then the goods are delivered to the concerned.

3. Classification of the costs

Part of the collection of costs served as follows:

1. Took note of a number of expenses that usually must be equipped with the data, the post-postal expenditures, such as the purchase of goods and types of other costs.
2. List the cost data delivery and first-party material value that is charged to the purchaser.
3. The costs has been recorded was sent on parts requiring first checked the truth of the writing and the calculations.

Then, to make the separation of the aforesaid authority depends and the magnitude of the company and number of employees. If your organization is already separating the functions that need to be defined the existence of authority that initiative to be the coming of the one originally prescribed initiatives such as part orders or other parts that need. Besides, it also meant that all expenditure-expenditure on goods from the warehouse either through sales or for other purposes got supervision in such a way, so that the possibility of cheating the abusive can be avoided or reduced as far as possible.

In the exercise of the functions of the collection costs are generally carried out by the Organization and administration of orders and are influenced by the system of sales made on credit sales system for example, cash and so on.

Next ways commonly used in the system of collecting fees, as follows:

2. Separation between

A. Records spending

The recording was done by first officer expenses that make sales invoice. This little created a duplicate invoice four (4) the first (original) for purchase, 2 sheet to be sent to the delivery section, 3rd sheet sent to additional accounts receivable bookkeeper and sheet into 4 arrested for archives.

If the buyer will take the goods bought his own, then taken to the checkout invoice and the amount of money stated therein are paid. The cashier will count the money play cash register, branded the return it invoice to buyer if plus receipts.

An invoice that has been stamped by the buyer are brought to the delivery of goods and issued with an item that has been submitted the second sheet.

If the buyer doesn't take itself purchased items, then pay to the cashier when he was given a receipt the buyer will receive a letter of command spending or delivery order. One copy is sent to DO sexy warehouse and received the goods stated in the DO.

B. The Surrendering of goods

This section is responsible for the destruction of the distribution of goods to subscription in accordance with the instructions given by the expenses. Delivery of goods often happens directly from the warehouse by using DO and also indirectly by delivering the goods to home subscription where due to the delivery of goods in cash and surrender of goods in credit.

C. Receive money

This stuff is under the coordination of the financial section, top approval leadership of the company and served as follows:

• Record all receipts of money, either by cash, check, or transfer form in a list.
• List of acceptance delivered to holders of the diary holders and additional books receivable.
• Cash, checks and giro received was turned over to the cashier and deposited to the bank entirely, to tomorrow no later than day.
• There should be a separation between the cashier and the officer who holds an additional book receivables and debt.

3. Credit sales

On credit sales this then every time the value of the credit, buyers must be judged. Books of accounts receivable should be every month compared with an estimated receivable in the General Ledger.
Internal auditing include: receivables top

A. The Division of tasks among others:

• Order acceptance
• Officers who have to approve the sale of the credits
• Officers who have to send items
• Officers who noted an additional book accounts receivable
• Officers who received the money.
• Officer part archive.

B. Payment on invoice-an invoice that is certain.C. each month periodically posted lists of the balance on the accounts receivable.