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Object documentationWarehouses - Setup: Accounting Tab Locate this document in the navigation structure

 

Use this tab to define all the accounts relevant for inventory management per warehouse. If you have determined G/L account settings by warehouse (  Administration   System Initialization   General Settings   Inventory   Items   subtab), any new item you create is related to the accounts defined in this window.

To open the window choose   Administration   Setup   Inventory   Warehouses  .

Warehouses - Setup, Accounting Tab
Expense Account

Specify an account in which the expenses incurred by purchasing are posted.

Revenues Account

Specify an account in which the income incurred by sales are posted.

Inventory Account

Reflects the inventory final value and recorded in every inventory transaction that involves items of this warehouse.

Cost of Goods Sold

Define the G/L account to be used when transactions of selling goods are created

Allocation Acct

This clearing account is used as an offsetting account to the inventory account in goods receipt POs and A/P credit memos. The balance of this G/L account reflects the total amount of open goods receipt POs and goods returns related to items in this warehouse

Variance Acct

This G/L account is used only in a standard price inventory system. In specific scenarios, if there are differences between the standard price and the actual price in the purchasing document, these differences will be recorded in the variance account.

Price Differences Account

Used in purchasing transactions only. Price differences between the base document and the target document will be recorded in this account in specific situations.

Inventory Offset – Increase Account

Offsetting account for the inventory account used in goods receipts and positive differences in inventory postings. You can change this account manually while creating its corresponding document.

Inventory Offset – Decrease Account

Offsetting account for the inventory account used in goods issues and negative differences in inventory postings. You can change this account manually while creating its corresponding document.

Sales Returns

Specify the G/L account to be used when a goods return transaction is created.

Sales Revenue - EU

Define an account to be used whenever items of this warehouse are sold in the European Union.

EU Expenses Acct

Define an account to be used for expenses related to documents created for the European Union.

Sales Revenue -Foreign

Define an account to be used whenever items of this warehouse are sold out of the European Union.

Foreign Expenses Acct

Define an account to be used for expenses related to documents created for countries outside the European Union.

Purchase Acct

Define an account to be used whenever a purchasing transaction is created for items in this warehouse.

Purchase Returning Acct

Define an account to be used whenever purchased items from this warehouse are returned to vendors.

Purchase Offset Acct

Define the account used to offset the purchase account or the purchase returning account, thus maintaining journal entries that were created by purchasing documents balanced.

Exchange Rate Differences Acct

Used in purchasing transactions only. In certain scenarios, creating a target document from a base document when the item price is in a foreign currency and the target document is connected to a different exchange rate, a difference in local currency occurs and is posted to this account.

Goods Clearing Acct

An offsetting account to the allocation costs used when closing goods receipt POs or goods returns. In this case, no inventory entry is registered; however, a journal entry is created and includes this G/L account.

G/L Increase Account, G/L Decrease Account

These accounts are used as balancing accounts when the inventory value is increased due to the creation of a material revaluation document.

WIP Inventory Account

This account maintains the value of the items that are in the process of production, that is, when the final product is not ready yet, but the production has already begun.

WIP Inventory Variance Account

This account holds the variance amounts of the items involved in the production process, that is, the variance between the cost of the products and the cost of the components in a production order.

WIP Offset P&L Account

An offsetting account (contra-account) to a WIP (work in progress) account used within production transactions and used for change of value of a WIP account during the production process.

This account is used only when you select the Accounting with Balance Sheet Accounts and Profit & Loss Accounts option of the production order document, on the Per Document tab of the Document Settings window.

Inventory Offset P&L Account

An offsetting account (contra-account) to an inventory account used within production transactions and used for change of value of an inventory account during the production process.

This account is used only when you select the Accounting with Balance Sheet Accounts and Profit & Loss Accounts option of the production order document, on the Per Document tab of the Document Settings window.

Expenses Clearing Account

If freight charges are defined as influencing on inventory values, this account used as a clearing account for the expense amounts included in the postings created by the Goods Receipt PO.

Expense Offset Account

If freight charges are defined as influencing inventory values, this account is used as an offsetting account for the freight value included in the purchasing postings.

Country-Specific Field: China, Japan and Korea
Inventory in Transit Acct

This account is used only for China's A/P reserve invoice and Korea's A/P reserve invoice to replace the allocation account. It is used as an offsetting account to the inventory account in goods receipt POs and A/P credit memos. The balance of this G/L account reflects the total amount of open goods receipt POs and goods returns.

Country-Specific Field: India
Incoming CENVAT Account (WH) / Outgoing CENVAT Account (WH)

Specify an account for CENVAT taxes posting in the excise invoice at warehouse level.

This account is mandatory if the checkbox Excisable is selected for a warehouse.

  • Outgoing excise invoice is based on inventory transfer.

  • Incoming excise invoice is based on outgoing excise invoice.