Purchasing and Inventory Accounts commonly defined during Setup
1. Purchasing:
Financial OptionsAccounting Information
· Liability Account
· Prepayment Account
· Discount Taken Account
· Rate Variance Gain Account
· Rate Variance Loss Account
Purchasing Options
Accruals
· Expense AP Accrual Account
Receiving OptionsReceiving Account (need one account per inventory organization; they can be the same).
2. Inventory:
Define Organization Parameters - All accounts in this section are required for each inventory organization; they can be the same between orgs.
· Inter-Org Transfer Accounts (required for setup)
· Inter-Org Receivable Account
· Inter-Org Payable Account
· Inter-Org Purchase Price Variance Account
· Intransit Inventory Account
Valuation Accounts
· Material Account
· Outside Processing Account (this won’t be used, so a suspense account is fine)
· Material Overhead Account (this won’t be used, so a suspense account is fine)
· Overhead Account (this won’t be used, so a suspense account is fine)
· Resource Account (this won’t be used, so a suspense account is fine)
Other Default Accounts
· Purchase Price Variance Account
· Invoice Price Variance Account
· Inventory Accrual Account
· Encumbrance Account (this won’t be used, so a suspense account is fine)
· Expense Account
· Sales Account
· Cost of Goods Sold Account (this is a default; each item can have a COGS account as well)
· Average Cost Variance Account (this probably won’t be used, so a suspense account is fine)
Define Subinventory - All accounts in this section are required for each subinventory in each org; they can be the same as the org level, and can be the same between subinventories.
Subinventory Accounts
· Material Account
· Outside Processing Account (this won’t be used, so a suspense account is fine)
· Material Overhead Account (this won’t be used, so a suspense account is fine)
· Overhead Account (this won’t be used, so a suspense account is fine)
· Resource Account (this won’t be used, so a suspense account is fine)
· Expense Account
· Encumbrance Account (this won’t be used, so a suspense account is fine)
Define Freight Carriers - Need an account for each carrier defined; they can all be identical, overlapping (Ground account vs. Express account) or unique; freight carriers are optional, and may not be set up.
Define Inter-Org Shipping Information
· Inter-Org Transfer Credit Account
· Inter-Org Receivable Account
· Inter-Org Payable Account
· Inter-Org Purchase Price Variance Account
· Intransit Inventory Account
Define Overhead· Absorption Account
Define Item - need an account code for each item defined; they can be identical, overlapping, or unique; these accounts are optional since they will default from the subinventory or organization
· Cost of Goods Sold Account
· Encumbrance Account (this won’t be used, so a suspense account is fine)
· Expense Account
· Sales Account
