Costing Accounts


When we post purchase and sale transactions the cost of an article/Item, the costing effect will go to various accounts in G/L if "Expected Cost Posting" & "Automatic Cost Posting" is true in inventory setup.


The following procedure will illustrate you which account system will pick for what transaction.


PURCHASE:
GRN/MIR (Goods Receipt Note/ Material Inward Receipt)
    Invt. Accrual Acc. (Interim) - Cr
    Inventory Interim - Dr

Invoice (Purchase Invoice)
    Invt. Accrual Acc. (Interim) - Dr
    Inventory Interim - Cr
    Direct Cost Applied - Cr
    Stock A/C- Dr

(Note: If you use the option "Receive and Invoice" then Expected costing 
          accounts will not effect)

SALES:

DC/SHIP (Delivery Note)

    Cost of Goods Sold (Interim) - Dr

    Inventory Interim - Cr

Invoice (Sales Invoice)

    Cost of Goods Sold (Interim) - Cr

    Inventory Interim - Dr
    Cost of Good Sold - Dr
    Stock A/C- Cr

(Note: If you use the option "Ship and Invoice" then Expected costing 
          accounts will not effect)

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--Happy reading