Debit Cost of Goods Sold, Credit Inventory

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Hi:

In a test company, we posted a sales invoice. But, we cannot see the general ledger entry for debiting the Cost of Goods Sold account and crediting the Inventory account in the General Ledger. All other general ledger entries appear.

Is there a setting that we need to change in Business Central to allow for posting to these two accounts in the general ledger for posting a sales invoice?

John

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Dynamics 365 Business Central

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dkkipfer 336 on at

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RE: Debit Cost of Goods Sold, Credit Inventory

Hi John,

Have you double checked all your posting setups? General Posting Setup, General Product Posting Groups, Inventory Posting Setup, and finally the selections for the particular item you're invoicing.

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Bilal Haider 408 on at

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RE: Debit Cost of Goods Sold, Credit Inventory

Hi John,

Yes there is a setting. It means you have disabled Automatic Cost Posting. If this is disabled then we need to run a batch report "Post Inventory cost to G/L" to post item costs to G/L at the end of accounting period. If you want to enable it simply go to Inventory Setup and enable Automatic Cost Posting.

After enabling it now when you post sales invoice you'll get two more G/L entries. One as credit to Inventory as inventory (Asset) is decreases and then a debit in Costs of Goods Sale Account. To view the accounts that are set for COGS and Inventory open General Posting Setup and Inventory posting setup respectively.

Hope this will help you. And please verify the answer if it helps you.

Thanks,

Bilal Rai

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Community Member on at

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RE: Debit Cost of Goods Sold, Credit Inventory

This worked! Thank you, Bilal!

John

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