Hi community,
Is there any financial / system "reason" why the Project Management and Accounting module does the additional 2 ledger postings when posting an item journal?
If an Investment project is configured to post to "Balance" for all transactions (on the project group) and line property = capitalise, I'd expect a simple debit "WIP" and credit "Stock control" posting, like you'd be getting with posting expense (i.e. debit "WIP" and credit "AP" etc.) or hour journals (i.e. debit "WIP" and credit "clearing").
But the ledger postings for item consumption are:
- (1) Debit: Project - WIP cost - item (BS account)
- (2) Credit: Project - cost item (PL account)
- (3) Debit: Project - cost (PL account)
- (4) Credit: Stock issue (BS Account)
Why is the in/out posting of #2 and #3 (from above) happening specifically for an item journal on Balance setting? - is it some "financy" reason? (apologies, I'm not an accountant)
I know you can choose not the capitalise the transaction (by toggling the line property accordingly) in which it would be expensed at posting - which makes sense, but then you'd expect the same behaviour for expense or hours journals...
Thanks,
AM
