Paradigm Support Desk

The manufacturing module requires that you create an Overhead Recovery account and a Work in Progress (WIP) account in Sage Evolution.

  • Overhead Recovery Account 

The recovery account is going to reflect on your income statement on a Month-To-Date and Year-To-Date basis, how much money you've recovered in throughput. This is the value you put the manufactured items into stock at less the cost of the materials used to produce them.

You can use the overhead recovery account for a simple high-level assessment of your throughput.

Example: If your business costs you R2 500 000 per year to operate and you work for 250 days per year, your daily operating costs are R10 000. Therefore, if your daily overhead recovery is an average of R12 000 per day, then you are making R2000 per day in profit, multiplied by your 250 working days to give you an annual profit of R 500 000.

Create the Overhead Recovery Account:

1. Open up Sage Evolution

2. Navigate to General Ledger/Maintenance/Accounts

3. Press the Add Button on the Toolbar to Create a New General Ledger Account

4. Provide a Name and Description for the Account

5. Make the Account Type a Cost of Sales Account

  • Work in Progress (WIP) Account

The account type for your WIP account is an inventory account. When raw materials are sent into production, it sits in Work in Progress as part of your inventory before itis put back into stock as finished goods.
Create the Work in Progress (WIP) Account:
1. Open up Sage Evolution

2. Navigate to General Ledger/Maintenance/Accounts

3. Press the Add + Button on the Toolbar to Create a New General Ledger Account

4. Provide a Name and Description for the Account

5. Make the Account Type an Inventory Account

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