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  • All The Inventory Transactions Will Look For The Valuation Class and Thecorresponding GL

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    swayam
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    All inventory transactions look up the corresponding valuation class and general ledger accounts to post values. For example, during goods receipt the stock account is debited and freight clearing and other expenses payable accounts are credited. When an invoice is verified, the goods receipt account is debited and the vendor is credited. When goods are issued for production, the stock account is credited and consumption of raw materials is debited, and when goods are received from production the inventory account is debited and cost of goods produced is credited, with price differences debited or credited. When goods are dispatched to a customer, cost of goods sold is debited and inventory is credited, and when goods are issued to a cost center expenses are charged.

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    All the Inventory Transactions Will Look for the Valuation Class and Thecorresponding Gl

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    All the Inventory Transactions Will Look for the Valuation Class and Thecorresponding Gl

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    All inventory transactions look up the corresponding valuation class and general ledger accounts to post values. For example, during goods receipt the stock account is debited and freight clearing and other expenses payable accounts are credited. When an invoice is verified, the goods receipt account is debited and the vendor is credited. When goods are issued for production, the stock account is credited and consumption of raw materials is debited, and when goods are received from production the inventory account is debited and cost of goods produced is credited, with price differences debited or credited. When goods are dispatched to a customer, cost of goods sold is debited and inventory is credited, and when goods are issued to a cost center expenses are charged.

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    11 views11 pages

    All The Inventory Transactions Will Look For The Valuation Class and Thecorresponding GL

    Uploaded by

    swayam
    All inventory transactions look up the corresponding valuation class and general ledger accounts to post values. For example, during goods receipt the stock account is debited and freight clearing and other expenses payable accounts are credited. When an invoice is verified, the goods receipt account is debited and the vendor is credited. When goods are issued for production, the stock account is credited and consumption of raw materials is debited, and when goods are received from production the inventory account is debited and cost of goods produced is credited, with price differences debited or credited. When goods are dispatched to a customer, cost of goods sold is debited and inventory is credited, and when goods are issued to a cost center expenses are charged.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 11

    All the Inventory transactions will look for the valuation class and

    thecorrespondi ng G.L. Accounts and postthe values in the G.L accounts. For Example: during Goods

    ReceiptStock Account DrG/R I/R Acco unt - CrFreight Clearing account - CrOther expenses payable -

    CrDuring Invoice VerificationG/R I/R Account DrVendor - Cr When the Goods are issued to the

    Production Order the following transactionstak es place: Consumption of Raw Materials -

    DrStock A/c Cr When the Goods are received from the Production Order the followingtransa

    ctions takes place: Inventory A/c DrCost of Goods Produced - CrPrice difference Dr/Cr(depending

    on the difference between standard cost and actual cost) When the Goods are dispatched to customer throu

    gh delivery the followingtransa ctions takes place: Cost of Goods Sold DrInventory A/c - Cr

    When the Goods are issued to a Cost Center or charged off against expenses thefoll owing

    transactions takes place:

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