Use this tab to specify the required inventory information.
To access this tab, choose: Administration > Setup > Financials > G/L Account Determination > Inventory.
Caution: Changing the account code assignments may result in erroneous inventory transactions. The inventory audit report results may also be affected.
G/L Account Determination: Inventory Tab
Advanced Rules
Indicates if and to how many advanced G/L account determination rules a given account is assigned. Click the link arrow to view the respective rules in the Advanced G/L Account Determination Rules window.
Inventory Account
Reflects the final inventory value and is recorded in every inventory transaction in SAP Business One.
Cost of Goods Sold Account
Define the G/L account to use when transactions of goods sold are created.
Allocation Account
This clearing account is used as an offsetting account to the inventory account in goods receipt POs and A/P goods returns. The balance of this G/L account reflects the total amount of open goods receipt POs and goods returns.
Variance Account
This G/L account is used only in a standard-price inventory system. In certain scenarios, if there are differences between the standard price and the actual price in the purchasing document, these differences are recorded in the variance account.
Price Difference Account
Used in purchasing transactions only. For certain scenarios, price differences between the base and target documents are recorded in this account.
Negative Inventory Adjustment Acct
This account is used only if:
- Inventory quantity is negative when the inventory posting takes place
- The document price is different from the moving average or the FIFO price.
In these cases the moving average or FIFO prices are held static, and the differences between these prices and inventory values resulting from the addition of new documents, are posted to this account.
Note: This account is not relevant for the standard price valuation method.
Caution: From an accounting perspective, we do not recommend using negative inventory. However, to use negative inventory, deselect the Block Negative Inventory field in: Administration > System Initialization > Document Settings > General tab.
Inventory Offset – Decr Account, Inventory Offset – Incr Account
Accounts used as balancing accounts when the inventory value is increased or decreased as a result of creating a goods receipt or a goods issue.
Sales Returns Account
Define the G/L account to use when a transaction for a goods return is created.
Purchase Account
The G/L account you select here is recorded in the journal entry, along with the same amount that is recorded for the inventory account, when an A/P invoice or a goods receipt PO is created.
Note: This field appears only when you selected the Use Purchase Accounts Posting System checkbox in: Administration > System Initialization>Company Details > Basic Initialization.
Purchase Return Account
The G/L account you select here is recorded in the journal entry, along with the same amount that is recorded for the inventory account, when a goods return or an A/P credit memo is created.
Note: This field appears only when you selected the Use Purchase Accounts Posting System checkbox in: Administration > System Initialization > Company Details > Basic Initialization.
Purchase Offset Account
The G/L account you select here is used in order to offset the purchase or purchase-return account, thus maintaining journal entries created by balanced purchasing documents.
Note: This field appears only when:
- Your company manages a non-perpetual inventory system, and
- You selected the Use Purchase Accounts Posting System checkbox in: Administration > System Initialization > Company Details > Basic Initialization.
Cost of Goods Purchased Account
Define the G/L account to use when transactions of goods purchased are created.
Note: This field appears only when:
- Your company manages a perpetual inventory system, and
- You selected the Use Purchase Accounts Posting System checkbox in: Administration > System Initialization > Company Details > Basic Initialization.
Exchange Rate Differences Account
Used in purchasing transactions only. In certain scenarios, when a target document is created based on a base document whose item price is in a foreign currency, and the target document is connected to a different exchange rate, a difference in local currency occurs.
Goods Clearing Account
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 including this G/L account.
G/L Decrease Account, G/L Increase Account
G/L accounts used for balancing the change in inventory value resulting from the creation of Inventory Revaluation documents.
WIP Inventory Account
This account maintains the value of the items that are included in the work process, that is, the period between the start of production and the completion of the final product.
WIP Inventory Variance Account
This account holds the variance amounts of the items that are part of the production process.
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.
Expense Clearing Account
Define an offsetting G/L account for clearing journal entries created by A/P invoices and goods receipt POs. This G/L account is used in journal entries whenever the allocation account is also involved.
Expense Offset Account
If an additional expense influences inventory values, this account is used as an offsetting account for the additional expense value included in the purchasing posting.
Stock In Transit Account
This account replaces the allocation account for the A/P reserve invoices
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.
Purchase Balance Account
Define a G/L account to reflect any variance between the purchase account and the cost of goods purchased account.
Note: This field appears only when:
- Your company manages a perpetual inventory system, and
- You selected the Use Purchase Accounts Posting System checkbox in: Administration > System Initialization > Company Details > Basic Initialization.