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Understanding Product Account Hierarchy

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

In This Section

Standard Inventory

Multiple Warehouses

See Also

Orders Accounting Business Rules

Understanding Cash Handling in Orders

Understanding Order Accounting Entries

Understanding Order Inventory Transactions

Understanding Inventory Accounting Transactions

Understanding Multiple Entities and Orders


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