The following accounting transactions are created when a multiple warehouse inventory transaction is posted:
Receipt
Accounting transactions are not created when inventory receipts are posted for a product's warehouse. However, accounting transactions are created for a warehouse's inventory receipts when inventory invoices are processed through AR/Cash or a check is written that affects the General Ledger account.
Inventory Adjustment
Unlike product inventory receipts, inventory adjustments for product warehouses create accounting transactions if the Cost of Goods Sold option is enabled on the Inventory System Setup window.
If accounts are defined at the warehouse level, inventory adjustments create accounting transactions that affect a warehouse's Inventory and Adjustments accounts. For example, an inventory adjustment that reduces a warehouse's inventory will credit the warehouse's Inventory account and debit the warehouse's Adjustments account.
Account hierarchy determines which specific Income and Adjustments accounts are affected by inventory adjustments.
Note: If you are using batch control, be sure to open the appropriate batch before posting inventory adjustments.
Transfer
Warehouse transfers generate accounting transactions if the Cost of Goods Sold option is enabled on the Inventory System Setup window.
If Inventory accounts are defined at the warehouse level, inventory transfers create accounting transactions that affect both warehouses' Inventory accounts. For example, an inventory transfer credits the Inventory account of the From Warehouse and debits the Inventory account of the To Warehouse.
If Inventory accounts are not defined at the warehouse level, inventory transfers do not generate noticeable accounting transactions.
10.6 Production Release. Updated 7/21/2005 1:22:33 PM
© Copyright by Advanced Solutions International, Inc.
All rights reserved.