MANUALS > G/L Interface > G/L Interface Module > G/L Interface, Update Menu > Journal Entries Expenditure > Configuring Expenditure Codes > Expenditure Class - MATERIAL

The 'MATERIAL' J/E Expenditure Class takes place when a consumable P/N with an associated cost is issued to a Work Order.

For example, create or choose a Work Order with an assigned aircraft.

Select a consumable P/N via Inventory Transaction. Make sure the P/N has costs associated against it through the Accounting tab of the Inventory Detail window.

Note: As part of the multi company functionality, parts owned by one company and entered into inventory through a related company will be reflected in the G/L when the part is issued to a Work Order.

From the Inventory Transaction window select the Manual Issue button.

Enter the selected Work Order and the quantity then save.

From the Journal Entry Detail Query window users can see the adjustments made against the G/L.

Notice the J/E Expenditure Class field lists 'MATERIAL'.

Note: The above screenshot has been altered to highlight the relevant columns for this example.

For more information regarding the issuing of a Work Orders refer to the topics Work Order via the Production manual and the Manual Issue Button via the Inventory manual.

Work Order Closing:

The reverse of the Work In Progress 'MATERIAL' Journal Entry takes place during the Work Order Closing process. The charges associated to the G/L are reverted into the 'EXPENSE' account.

Note: The above screenshot has been altered to highlight the relevant columns for this example.

For more information refer to the topics Work Order Closing and Work Order Closing Post Completion via the Production manual.

Third Party Work Order:

For Third Party Work Orders, create a W/O with the Third Party checkbox selected.

After saving, the Customer Orders window will appear. Enter all relevant information.

From the W/O Sell tab, enter the Contract Number for the previously created Customer Contract. Select the Save button to save.

Find a serialized part with an assigned cost via Inventory Transaction then select the Manual Issue button.

Enter the Third Party W/O number with an assigned W/O Task Card. The W/O Task Card must be assigned from the Work Order window by selecting the Task Card button or the Non-Routine Task Card button. Save the Manual Issue.

From the Journal Entry Detail Query window users can see the adjustments made against the G/L.

For more information on Third Party Work Orders and Customer Contracts, refer to the topics Third Party Button and Customer Contract via the Production manual.

Third Party Work Order Closing:

The 'MATERIAL' class Journal Entry charge is reversed through the Work Order Closing process. The charges associated to the G/L are reverted into the 'COST OF SALES' account. (See notes at the bottom of the topic.)

Note: The difference between the 'WORK IN PROGRESS' account and the 'SALES' and 'ACCOUNTS RECEIVABLE' accounts is the Mark Up percentage entered in the Customer Contract that is associated to the Third Party Work Order. Because it is a Third Party Work Order, when closed, additional charges will be accrued to the 'SALES' and 'ACCOUNTS RECEIVABLE' accounts then reversed into the 'COST OF SALES' account. (In this example the Mark Up is 25.000 %.)

From the Journal Entry Detail Query window users can see the adjustments made against the G/L.

For more information on the closing of a Work Order, refer to the topics Work Order Closing and Work Order Closing Post Completion via the Production manual.

Note: Refer to G/L Interface Switch JETPWSAL for more information regarding the Accounts Receivable account. When set to Yes, the AR account will NOT be charged at Third Party W/O Closing. When set to No (as in the examples above), the AR account is charged. Users must also perform the Customer Invoice Authorization. For more information refer to the topic Customer Invoice Authorization via the Production manual.