Accounting within Micronet is based on a cost or management accounting style of General Ledger. Standard costs are applied to individual products in the valuation of Stock on Hand, and product is received and accounted for within the Distribution system. Costs are transferred from Stock on Hand at time of sale on a product-by-product basis, expensed as the standard cost setup within the inventory files of the Distribution system. Purchase price variances are calculated over the period as items are costed for actual, thereby updating and reflecting the actual Stock on Hand and Cost of Sales as issues concerning timing and process are considered and processed.
Integration is the mechanism that links the Micronet sub-ledgers to the General Ledger. Financial transactions are generated within the sub-ledgers, classified and compiled and subsequently transferred to the appropriate periods and GL accounts for reporting and analysis. An understanding of cost or management accounting systems is therefore necessary to effectively use the Micronet system where high level stock or manufacturing is the cornerstone of your business.
The following sections provide a brief overview of: