When an item is recorded on a sales order line, an inventory transaction is generated specifying the quantity, but not cost information.

When the item is packing slip updated, transactions are generated in the Packing slip (issue) and Packing-slip offset account (consumption), if Post physical inventoryin Inventory model groups (form), and Post packing slip in ledgerin Accounts receivable parametersare checked. Expected sales can be posted with a packing slip update in the Revenue and Revenue offset accounts by selecting Post physical revenuein the Inventory model group setup, and Post packing slip in ledger in the Accounts receivable parameterson the Updatestab. When these are selected, physical and financial contribution margins can be handled in the ledger balance.

When the sale is invoice updated, the packing slip accounts are reset, and the item's cost price is credited in Issue, and debited in Consumption. Item sales, excluding sales tax, are credited in Revenue, sales tax is credited in the account for the sales tax code, and total sales (including sales tax) is debited in the customer summary account based on the posting setup in the Accounts receivablemodule.

If an account is specified for line discounts, sales are posted before the line discount is deducted, and the line discount is debited in Discount. If no account is specified for line discounts, Revenue minus the line discount is posted, and the line discount will not appear directly in an account in the ledger.

If commissions are calculated when invoice-updating, the commission is debited in Commission, and credited in Commission offset.

When an item is recorded on a purchase order line, an inventory transaction is generated specifying the quantity, but not price information.

When the item is received, transactions are generated for the packing slip update in the Packing slip and Packing slip offset accounts, if Inventory model groups (form), and Post packing slip in ledgerin Accounts payable parametersare checked. The transactions are based on the item's cost price at the time of the update.

When the purchase is invoice-updated, these accounts are reset. The item's realized cost price is debited in Receipt, and credited in the vendor summary account based on the posting setup in the Accounts payablemodule.

If an account is specified for line discounts, the value of the inventory receipt is debited in Receipt before the line discount is deducted, and the line discount is credited separately in Discount. If no account is specified for line discounts, the inventory receipt is posted after deduction of the discount, and the discount will not appear directly in a ledger account.

Use Consumptionto post item consumption with a credit note for a purchase, where the cost price differs from the purchase price.

Use Fixed receipt price profit, Fixed receipt price loss, and Fixed receipt price offsetwhen purchasing items, if Fixed receipt priceis checked for the inventory model group, and the purchase price differs from the standard cost price listed in the item table.

Use Fixed receipt price profitand Fixed receipt price lossto post gained or lost margins with regard to the standard cost price. Use Receiptand Issueto post item receipts and item issues, respectively. Use Profitand Lossto post item profit and item loss.

Use the Inter-unit payableand Inter-unit receivableto post profit or loss incurred when transferring between different item dimensions or between different sites. Profit or loss can occur if different item dimensions have different costs for the same item (for example, red items are more expensive than white items), or if different sites within the same company have different costs for the same item.

For production orders, transactions are generated for both the component raw materials, and the produced bill of materials. When a production order is started, or physical item consumption is registered for the production order, issue transactions for the component items are created, and item consumption is posted in Picking listissue and Picking list offset account. The cost price of the raw materials is calculated according to standard rules for issues.

When production orders are reported as finished, receipt transactions are generated for finished items, and the items' calculated cost price is posted in Reported as finished receipt and Reported as finished offset account.

When you cost account production orders with End jobchecked, the four accounts mentioned above are reset, and the actual consumption of raw materials is credited to Issue and debited from Issue offset account. The cost price of the finished item is debited from Receipt and credited to Receipt offset account.

When the standard cost price is used for the finished item, these transactions are made at standard cost price. The difference between the actual cost price and the standard cost price is posted to the account for Fixed receipt price loss, or Fixed receipt price profiton the Inventorytab.

Specify which accounts from the Chart of accountsto use for the various account types in each area.

Besides specifying postings for groups in the Item group (form), more advanced setup can be performed in the Inventory posting (form). This allows for posting on items, groups, or all.

Item groups generate transactions in the Postingdialog box, accessed through the Postingbutton, when the Item code field for the transaction is set to Group. If the Item codeis changed from Groupto All, accounts set up on the relevant tabs in the Item group setup are deleted.