Of revenue caused when previously sold goods are returned or credit notesĮxpense account that Inventory Control debits with theĬost of goods sold, and credits with the cost of goods returned.Įxpense account in which Inventory Control records the cost variance between Revenue account that Order Entry credits withĪ contra revenue account that Order Entry debits to record the reduction Inventory Control Item Categories Item Category Note: Order Entry uses the Sales, Returns, and Damaged Goods accounts, which are not used by Inventory Control. The Credit/Debit Note Clearing account is required because the inventory return and credit note functions in Order Entry are separated, with one side of the transaction going through Accounts Receivable.įor each category that you add in Inventory Control, you specify general ledger account numbers for the following five accounts. The general ledger transaction credits the clearing account instead of Cost of Goods Sold and the Accounts Receivable Control account. The expense account that balances the change in inventory value when you adjust inventory quantities after making a physical inventory count.ĭebited instead of the I/C Control account or the Damaged Goods account in Order Entry returns sent to Accounts Receivable. Used if you specify an expense amount when you disassemble items that were previously assembled in Inventory Control. Cost of Goods Sold is debited when you invoice the shipment. The Shipment Clearing account is required because the shipment and invoicing functions in Order Entry are separated. This account is used for the additional cost amount on the Transfer screen.ĭebited instead of Cost of Goods Sold when shipping goods from Order Entry. You can use non-stock items to handle specially ordered items that you do not stock in your inventory, and to handle service charges that appear on invoices. The account you credit when you ship non-stock items, and debit when you enter shipment returns for non-stock items. You may want to create manual entries in the general ledger to redistribute the assembly cost credit to accounts such as labor costs. credits this account with the variable and fixed cost of assembly. The account to which you post the variable and fixed costs of assembling items. Entries to this account are normally expenses (debits) therefore, the account number you specify should be in the expenses or cost of goods sold section of your general ledger. The account to which you post inventory adjustments and write-offs. Inventory Control debits this account when you enter receipt returns.Īs you post the related vendor invoices in Accounts Payable, offsetting journal entries (debits) related to the inventory purchased are generated against the Payables Clearing account to clear the balance that is left in this account from posting the inventory receipt. Inventory Control normally generates credit entries to this account for inventory you receive therefore, the account can be thought of as the accrued amount payable for goods received into inventory. When you process all accounting entries correctly, the total cost of the inventory in Inventory Control equals the totals in the Inventory Control accounts in the general ledger.Ī suspense account to which Inventory Control posts the "other side" of the accounting entries for inventory you receive (and for previous receipts you return to suppliers). The word "control" in the account name means that the account contains only totals, whereas the information stored by Inventory Control contains details on an item-by-item basis. The account increases when you receive goods, and decreases when you ship goods. Inventory Control Account Sets Inventory Control Account Sets AccountĪn asset account containing the total value of the inventory on hand (at actual cost). The accounts are grouped in this article according to the Sage 300 modules in which they are assigned. General Ledger accounts are updated by transactions you post in Order Entry. General Ledger Accounts Used by Order Entry
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |