Issue: The inventory expenditure, loss and Inventory expenditure, profit posting configurations are used for both inventory adjustments and bill of materials WIP clearing accounts. This causes a conflict between two distinct processes – BOM processing and inventory adjustments. BOM processes fine, but when taking a physical and making subsequent inventory adjustments they components will be coded to WIP clearing as opposed to inventory Adjustments.
Details: During the course of BOM processing in Inventory (not the production module), these accounts essentially offset each other for the BOM components. The BOM items use the item group flag on the released product – Comp, Finished, Labor, Outside, Overhead, Print and Supplies. If an item group is not used then you are limited to coding every transaction to a single account defeating the utility of the Item code functionality.
During the course of taking a physical, these accounts are used to capture the physical adjustment. If the adjustment is a negative then the account is debited, if the adjustment is a positive then the account is credited.
The issue arises when we count any of the components - they will use the account 14025 instead of account 62350, because the system is recognizing the item group and using the associated account (14025).
Is this a design flaw? These accounts should be separate because the processes that use these accounts are distinct and not related. What am I missing here?
