G/L Account Determinations
This table goes over each Item G/L Account Determination and where it is used:
| G/L Account | Explanation | Documents that use this account |
|---|---|---|
| Expense Account | Define accounts to use as default expense accounts. | A/P Invoice (Non-Inventory items) |
| Revenue Account | Select a control account to be used as the default when a transaction of revenues is posted. | A/R Invoice |
| Inventory Account | Reflects the final inventory value and is recorded in every inventory transaction in OrchestratedBEER. | All Inventory-related transactions |
| Cost of Goods Sold Account | Define the G/L account to use when transactions of goods sold are created. | Delivery and A/R Invoice |
| 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. | Goods Receipt PO and A/P Invoice |
| Variance Account | This G/L account is used only in a standard-price inventory system. It is not used in OrchestratedBEER. | N/A |
| Price Difference Account | Used in purchasing transactions only. For certain scenarios, price differences between the base and target documents are recorded in this account. | A/P Invoice |
| Negative Inventory Adjustment Acct | This account is used to track values on items with a negative quantity. This is not used in OrchestratedBEER. | N/A |
| Inventory Offset - Decrease Account | Account used as balancing account when the inventory value is decreased as a result of creating a goods issue or similar transaction. | Goods Issue, Inventory Posting |
| Inventory Offset - Increase Account | Account used as balancing account when the inventory value is increased as a result of creating a goods receipt or similar transaction. | Goods Receipt, Inventory Posting |
| Sales Returns Account | Define the G/L account to use when a transaction for a goods return is created. | Return, A/R Credit Memo |
| 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. | A/P Invoice |
| 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. | Goods Receipt PO (Closed without copying to A/P Invoice) |
| G/L Decrease Account | G/L accounts used for balancing the change in inventory value resulting from the creation of Inventory Revaluation documents. | Inventory Revaluation |
| G/L Increase Account | G/L accounts used for balancing the change in inventory value resulting from the creation of Inventory Revaluation documents. | Inventory Revaluation |
| 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. | Issue for Production, Receipt from Production, Production Order |
| WIP Inventory Variance Account | This account holds the variance amounts of the items that are part of the production process. | Production Order |
| WIP Offset P&L Account | This account is not used in OrchestratedBEER | N/A |
| Inventory Offset P&L Account | This account is not used in OrchestratedBEER | N/A |
| 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. | A/P Invoice, Goods Receipt PO |
| Stock In Transit Account | This account replaces the allocation account for A/P reserve invoices. This is not commonly used in OrchestratedBEER | A/P Reserve Invoice |
| Sales Credit Account | Select a control account to be used as the default when a credit transaction of revenue is created. | A/R Credit Memo |
| Purchase Credit Account | Select a control account to use as the default when a credit transaction for purchasing is created. | A/P Credit Memo |