Transaction Entry Posting Home | FAQs & Troubleshooting

 

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The cost amounts associated with entries in Transaction Entry are posted to different general ledger accounts based on the transaction type (sales, issues, transfers, adjustments, and receipts).

Note You must use the Sales Order module to automatically post sales, cost of goods sold, inventory, and accounts receivable accounts as invoices are processed.

 Sales

The following general ledger postings are made for a transaction involving one item with a unit cost of $100.00.

Sales:	G/L Account	Debit	Credit
	Cost of Goods Sold	100.00
	Inventory		100.00

Costs associated with sales are calculated based on the valuation method used for the item sold. The Cost of Goods Sold account is based on the product line for the item, but can be overridden during data entry to allow departmental costing of items issued for in-house use, or for tracking sales based on the customer type.

The revenue amounts entered for sales transactions are for reference and sales history purposes only. These amounts are not posted to the general ledger.

 

 Issue

The following general ledger postings are made for a transaction involving one item with a unit cost of $100.00.

Issue:	G/L Account	Debit	Credit
	Cost of Goods Sold	100.00
	Inventory		100.00

Costs associated with issues are calculated based on the valuation method used for the item. The Cost of Goods Sold account is based on the product line for the item. This account can be overridden during data entry to allow departmental costing of items issued for in-house use or for tracking sales based on the customer type.

 

 Transfer

The following general ledger postings are made for a transaction involving one item with a unit cost of $100.00.

Transfer:	G/L Account	Debit	Credit
	Inventory (Whse 2)	100.00
	Inventory (Whse 1)		100.00

If the Require Multiple Warehouses check box and the appropriate segment in the G/L Segment for Whse Postings field are selected in the Inventory Management Options window, the Inventory account for the transfer from warehouse is credited and the account for the transfer to warehouse is debited. If the Require Multiple Warehouses check box is cleared, there are no general ledger postings by warehouse.

 

 Adjustment

The following general ledger postings are made for a transaction involving one item with a unit cost of $100.00.

Adjustment:	G/L Account	Debit	Credit
	Inventory	100.00
	Adjustment		100.00

Positive adjustments to an item debit the Inventory account; negative adjustments credit the Inventory account. Unit costs can be entered for positive adjustments, but negative adjustments use costs based on the valuation method for the item.

 

 Receipt

The following general ledger postings are made for a transaction involving one item with a unit cost of $100.00.

Receipt:	G/L Account	Debit	Credit
	Inventory	100.00
	Purchases Clearing		100.00

Unit cost amounts can be entered for all valuation methods. For items using the Standard Cost valuation method, the debit to the Inventory account is the standard cost multiplied by the quantity received. The Purchases Clearing account is credited with the unit cost multiplied by the quantity received, and the Adjustment account is posted with the difference.

For example, if a standard cost item of $100.00 receives an item with an actual cost of $95.00, the following general ledger accounts are posted.

Standard Cost Receipt:	G/L Account	Debit	Credit
	Inventory	100.00
	Purchases Clearing		95.00
	Adjustment	______	5.00
		100.00	100.00

 

For more information, see Account Maintenance