> For the complete documentation index, see [llms.txt](https://local.docs.ssaudit.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://local.docs.ssaudit.com/english-1/inventory-management-module/production-cost-calculation-and-cost-of-sales-calculation-process.md).

# 6.3 Production cost calculation & Cost of sales calculation (Process)

### Period-End Inventory Processing Workflow

**When to use:** At the end of each accounting period (usually month-end), the inventory accountant must execute a 5-step sequential process to: post inventory vouchers, calculate raw material issue prices, apply finished product receipt prices, calculate cost of goods sold, and transfer data to the general ledger. This is a mandatory process before preparing financial statements.

> **Example:** Process inventory for Jun/2026 — Post all receipt/issue slips, apply weighted average pricing for raw material issues, calculate finished product cost from account 154, apply COGS to account 632, transfer to GL.

![](/files/YJhuSXHjkBeD2NukdmPt)

To execute the inventory processing workflow, the user proceeds as follows:

1. Enter the date range in the **From Date / To Date** fields.
2. Click **Process** to start the 5-step workflow.

![](/files/XxA7wpUnEyNVoF9X2H1g)

![](/files/lf0FowPUunvY3dOSvtAj)

The workflow consists of 5 sequential steps:

***

**Step 1 — Batch Post Vouchers**

Batch-post inventory vouchers (receipt/issue/transfer/adjustment) from Hold to Released status.

1. Select display scope: **All** for all vouchers, or filter by **module**.
2. Check individual vouchers or check the column header to select all.
3. Click **Execute** to batch-post.
4. Click **Close** to exit.

![](/files/7tF7LKuOuRx1rtCJuJvS)

***

**Step 2 — Calculate Raw Material Issue Price**

Calculate issue unit price for all raw materials in the period using the selected method.

1. Select **Pricing Method**:
   * Period weighted average: Calculate issue price based on the full-period average (most common, per Circular 200).
   * Moving average: Calculate based on each receipt/issue transaction.
2. Click **Load** to load items requiring pricing for the selected period.
3. Click **Calculate** to compute and apply issue unit prices.
4. Review results on the grid — click **Save** to confirm.

![](/files/qfBT5sra1pEzMGxzMx0r)

***

**Step 3 — Calculate Finished Product Receipt Price**

Calculate finished product receipt unit price from production costs in the period (Account 154 → Account 155).

1. Click **Load** to load finished products received in the period.
2. Click **Calculate** to compute receipt unit prices from production costs.
3. Review results — click **Save** to confirm.

![](/files/DXx2ZuE6ma5N5vc2S5di)

***

**Step 4 — Calculate Cost of Goods Sold**

Update cost of goods sold (Account 632) for sales issue vouchers in the period based on issue prices calculated in Step 2.

![](/files/WmP7PbDSlFDpO3S1vV4Z)

***

**Step 5 — Transfer to Ledger**

Transfer all inventory data (receipts, issues, COGS) to the General Ledger (GL). After this step, inventory data is reflected in GL accounts 152, 155, 156, 632.

![](/files/04FTe8AEr3PVK350vXfU)

* **Operational Notes:**
  * Steps must be executed in the correct order — do not skip or reorder steps.
  * If errors are found in a prior step, delete the results and re-execute from that step.
  * Ensure all inventory vouchers for the period are fully entered before running the process.
  * Backup data before running the processing workflow.

> **Note:** This 5-step process must be completed before running period-end closing in the GL module and before preparing financial statements.