When an order is invoiced, the transaction credits the appropriate Income account. If the Generate Cost of Goods Sold option is enabled on the Inventory System Setup window, the transaction also credits the Inventory account and debits the Cost of Goods Sold account. However, which accounts actually are affected by a transaction depend on product account hierarchy.
Note: Orders does not look to AR/Cash for an Income account. If an Income account is not defined within the product's account hierarchy, then no Income account exists, and no Income account will be credited when an order for the product is invoiced.
Factors determining a product's account hierarchy
10.6 Production Release. Updated 2/24/2006 11:16:12 AM
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