Track the stages of the order
Materials received, work in progress and completed goods need identifiable records. Supplier invoices and production activity may occur in different periods, so cutoff evidence matters. The accountant determines the valuation policy and the records support its application.
A consistent work-order reference helps connect labour, materials and approved adjustments. Waste, returns and rework should retain an explanation rather than being absorbed into an unexplained stock correction.
Review cash tied up before delivery
Supplier terms, payroll and customer deposits affect the funding needed to complete an order. Monthly reports can show those commitments beside receivables and inventory. A strong order book does not mean every future sale is already available cash.
Illustrative example: components arrive before production
A Burnaby manufacturer receives components for two orders, but only one enters production before month end. The receipt and work-order records distinguish material stock from unfinished work. The owner can then discuss the production schedule and funding need using the same supported quantities as the accounting review.
Questions about this work
Can you cost individual orders?
Yes, where material, labour and allocation records support that detail. The included costs and policy must be clear.
Does every machine purchase qualify for PST relief?
No blanket exemption is assumed. The equipment, use and current provincial conditions require review and supporting evidence.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review