Accounting in Inventory —=—— Accounts Definition ‘You choose a default valuation account when yau define organization parameters, Under standard costing, these accounts are defaulted when you define subinventories and can be overridden. Under average casting, these accounts (except for Expense} ere used for subinventory transactions and cannot be updated. For a detailed discussion of cost elements. Following are the accounts that are defined in arganization parameters and used in inventory. ‘Account Type Description "This fan asso type account that racks material cost. Under standard id ‘costing, hase accounts are defaulted when you define subieventories and Mite ‘can be overridden. For average costing this account holds your inventory ‘and intransit values. Once you perform transactions, you cannot change this account. Material Overhead | An assot acount that tracks material overhead cost. Reeares ‘An asset accourit hat tracks resource cost, ineernate ‘An asset account that tracks resource and outside processing overhends, Outside processing | An ascot account that tracks aulsice processing cost Expense “The expense account used when tracking a nonsasset item.Accounting for Material Transactions ‘Accounting Entries Fp worage Cost @ x Recaleulated? Accounts Value eee ———E— EE DB | Receiving Inspection PO price tN A 0, game as no: ipt currant, cR | AP Accrual PO price 08 | Subinventory Valuation PO price +MOH PO Delivery to subinventory: CR | Receiving Inspection PO price Yes. CR | Material OH Absorption calc'd MOH BB | Receiving Inspection PO price ‘Yas, if MOH had changed since Return to Receiving MOH receipt, must from sublnventary (DB | Material OH Absorption use original rate— CR | Subinventory Valuation PO price +MOH | DOCUMENT. 0B | AvP Accrual PO price Return to Vendor from is Receiving Inspection CR | Receiving Inspection PO price ‘Subinventory (BB | Subinventory Valuation— receiver | Current average Transfer—ass« No subinventory to assat ‘subinventory ‘CR | Subinventory Valuation—sender | Current average Subinventory Transter—expense nt \ subinventory to No nist: Not Applicable [expense subinventory _ ‘Subinventory Valuation or saamvartory on | Subewntany Vas Curent vecage Transter—asset to Sohne Vena No chge tina or vioa varie ubinventory. Valuation oF pe GR | Bipeeencewes Current average DB | Subinventory Valuation i ela | Sg Miseallancous Roceipt Currentaverage or | average is CR | User-specified Account Uuserspecitiod calculated. (U.S.)seas Curent average or | Yas, user ‘08 | User-specified Account os overrides, new Miscellaneous Issue : average is GR | Subinventory Valuation Gurent average or | osseuled ‘Average cost of original shipments Be || Suninveniony Yeueten on sales order line | Yes, if reference RMA Recolpt to sales order Fvarage costar | line exists. R | Cost of Goods Sold original shipments on sales order ine DB | Cost of Goods Sola Curent average RMA Return: No. CR | Subinventory Valuation Current average Tverage Coat DB: | He-saiies, Recaleuloted? Direct Interorg Not applicable. Transter—expense to ‘Applias to both expense cR standard and average ‘organizations ‘Subinventory Valualion—receive pa: | amen Cuwent average Diteet interorg Transfer— Std-org to Average org | CR | Subinventory Valuation—sender except expense to os. expense 108 | Intororg Receivable ER | interorg Payable 108 | Subinventory Valuation—receiver | Curentaverage | Yes, receiving (org) recalculation Direct Interorg Transfer— | CR | Subinventory Valualion—sender of average Average org to Average Cost is rg excluding exp to not applicable expense DB | Interorg Payable receiving subinvantory is ER | Interorg Receivable (sending org) cornnes: = No. thereisno | 108 | Subinventory Valuation—raceiver PPV ifreceiving Average org to subinventory is Standard org excluding | cp | !nterorg Payable expense, expense to expense: (sending org) DB | Interorg Receivable108 | PPV—receiving org ER | Subinventory Val—sender 0B | Subinventory Valuation—receiver No, same as Receipt from Intransit (aandant orgie. | GR | Interora Payabte stance aseokto Average org FOB sone {rane is an Receipt 08 | Interorg Receivable asset subinventory) CR | Intransit Inventory ‘Subinventory Valuation—raca Yes, Receipt from Intransit recalculation of (Avaraga org) inte ER | intororg Payable Curent average | average cost is Average org— FOB not applicable it Receipt DB | Interorg Receivable receiving suibinventory is expense ER | Intransit Inventory ve No, iniranait fs Shipment totntransit | DB | Intransit inventory Current average | pookea from Average org— lementally, FOB Receipt GR | Subinventory Valuation or ‘asset to intransit Expense washes. ‘Subinventory Valuation or intransi Receipt rom inransit | 8 | Expense Cinentavetae | Orhan oa inte Average org—FOB of the same Shipment CR | Intransit Inventory Curent average | Secounts. 1B | Intransit Inventory Shipment tontransit | cR | interorg Payable Standard (Average org ) from Yes, Standard org asset ; subinv—FOB Shipment | 08 | Interorg Receivable GR | Subinventory Valuation—sonder 0B | Intransit inventory Standard Yes. Shipment to Intransit (Avg org) from Std org | CR | Interorg Payable expense subinventory—FOB | 8 | interorg Receivable Shipment ‘CR | Subinventory Valuation—sender08 | tntransit inventory Current average Tniororg Payabla(eanding om Shipment tolIntransit | CR | organization} focienienes ia (Aug) from Avg org — receiving Ee Saree 18 | interorg Receivable ‘erganization ‘CR | Subinventory Valuation—sender DB | Inventory Adjustments: Current average Inventory Adj—eyele No, some as count or physical inv current ‘CR | Subinventory Valuation 18 | Cost of Goods Sols Current average Salos Ordor Shipment 0 CR | Subinventory Valuation a | /vP Accrual PO Price ¢R | Accounts Payable invoice Not applicable. 0B | IPV DB | Work in Process Inv Gurrentaverage | No, expense Issue to Job from subinvantory to subinventory expense job ‘GR | Subinventory Valuation ‘cantteg tio coe BB | Subinventory Valuation Current average Component Return to is subinventory ° CR | Workin Process inv ‘Not applicable. 18 | Workin Process Inv Actual sondard ale Let No, Charge Labor Resource to WIP job charge CR | Resource Absorption type = Manual actual employee: rate, (BB | Work in Process Inv User-defined Charge Non-Labor Roteepcan Resource to WIP job GR | Resource Absorption or actual ate mee eat! |B | Workin Process inv Calculated OH | Not applicableCR | Overhead Absorption 88 | Work in Process inv PO price Charge Outside * a is Processing to WIP job GR | OSP Resource Absorption 0B | Subinventory Valuation Cale ave *MOH | va completion algorithm Complete Assemblies | CR | Work in Process Inv cole avg calculations based on job CR | Material OH Absorption cale'd MOH charges: ‘Average cost of 1B | Work in Process Inv ee Gatun Assemblies to o5 | haterial OH Absorption Yes. GR | Subinventory Valuation Wot applicable. 1B | Scrap Coloulated checkbox Scrap Assemblies from Require Serap wie ‘Account is ¢R | Work in Process inv checked, serap ales are based fon job charges 108 | Work in Process inv 7 / vires! werage cost of job | typ Saree serap cR | Scrap ‘Wot applicable, DE: Vallance Entries only ifjob Close WIP Jabs hasa GR | Work in Process Inv , residual Yas, enter % or DB | Subinventory Valuation User-specified | amount of ‘Average Cost Update change, ornew ER | Inventory Adjustment unit cast.