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Hey Guys, what are the pros or cons of using the same GL Account No. in the General Posting Setup for both the Purch. Account and for the Direct Cost Applied Account?
It seems like some people prefer to always use one GL Account and others will always use separate accounts. The only benefit I can think of having separate accounts is that it will allow you to manually calculate COGS using the purchases account balance.
I can see that different costing methods could cause the purchases account and direct cost applied account not to equal. And this is clear with the credit memo issue that you are having. The purchases account for credit memos gets the credit memo cost while the direct cost applied account gets the corrected unit cost based on costing method or applies-from item entry. To make these match, you can use the 'applies-from item entry' on the credit memo lines.
Good morning Kim,
Our Purch. Account and Purch. Credit Memo Account are the same G/L (#40610). Our Direct Cost Applied Account is separate (#40620). We have them total together on the Account Schedules and our Financial Statements.
Thank you!
Cortney Peaslee
Hi,
I hope this answer will help you to understand pros and cons
Using the same GL Account No. in the General Posting Setup for both the Purch. Account and for the Direct Cost Applied Account has its own pros and cons.
Pros:
Cons:
Kim,
We've noticed the net effect is NOT zero if the credit memo is less than the inventory value due to item charges or adjust cost. How is this corrected? We've been manually posting adjustments for the differences monthly, but that seems to be incorrect.
Any insight is truly appreciated!
Thank you,
Cortney
thanks Kim
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