Does anyone have documentation that shows when a specific account is used under what type of transactions? For example:
When is the Inventory Offset is used? Or when is the Variance used?
Any ideas would be greatly appreciated.
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I created this document a few years ago for the Inventory Module:
Inventory
Use this to store the value of the items currently in inventory. This account always defaults on Sales Order and Purchase Order Processing transactions.
Inventory Offset
Use this as an offset account on increase/decrease adjustments transactions entered in Inventory. Typically, this is a cost of goods sold account. When you create an Inventory Adjustment entry to Inventory, this is the other side of the entry
Cost of Goods Sold
Use this to store the cost of items sold in Sales Order Processing. This account defaults if Sales Order Processing Setup has Use Posting Accounts From set to Item.
Sales
Use this to record all the sales entered in Sales Order Processing. This account defaults if Sales Order Processing Setup has Use Posting Accounts From set to Item.
Markdowns
Use this to store the discount amount on each specific item in Sales Order Processing. This account always defaults on Sales Order Processing transactions that have a markdown.
Sales Returns
Use this to store the value of returned items through Sales Order Processing. This account defaults if Sales Order Proc. Setup has Use Posting Accounts From set to Item.
In Use
Use this to store the value of items transferred or returned to an In Use status. This is typically an Inventory account. Items are typically transferred from On Hand to In Use. You cannot sell items with a status of In Use.
In Service
Use this to store the value of items transferred or returned to an In Service status. This is typically an Inventory account. Items are typically transferred from On Hand to In Service. You cannot sell items with a status of In Service.
Damaged
Use this to store the value of items transferred or returned into a Damaged status. This is typically an expense account. Putting an item in the Damaged status does not remove it from your inventory.
Variance
Use this as the offset account to a variance transaction entered in Inventory. Typically, this is a cost of goods sold account, or an inventory shortage expense account. Like the Inventory Offset account, the Variance account is the other side of an inventory Variance transaction
Drop Ship Items
Use this in Sales Order Processing to store the cost entered for an inventory item being drop shipped to a customer (records a credit to the account). This is also used by Purchase Order Processing to record the cost of the item being drop shipped to a customer (records a debit to the account).
Purchase Price Variance
Use this in Purchase Order Processing to record any difference in cost between a shipment and invoice.
Unrealized Purchase Price Variance
Use this to track the difference between the standard cost and the actual cost the item is received for in Purchase Order Processing. This account is only used with Periodic valuation methods. When the item is invoiced, the variance will be moved to the purchase price variance account.
Inventory Returns
Use this to store the value of items transferred or returned into a Returned status. This is typically an Inventory account.
Assembly Variance
Use to store differences between actual costs and standard or average costs when building a subassembly in Bill of Material.
Standard Cost Revaluation
Used to record the P&L impact for items in inventory when the standard cost is adjusted up or down. The difference between the current standard cost and the new standard cost is recorded here. This is typically and income or COGS account.
Kind regards,
Leslie
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André Arnaud de Cal...
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