Posting Inventory Cost to the General Ledger

When you post inventory transactions, such as sales shipments, purchase invoices, production output, or negative adjustments, the program records the quantity and value changes to the inventory in the item ledger entries and the value entries, respectively. The next step in the process is to post the inventory values to the inventory accounts in the general ledger. There are two ways to do this:

Posting Inventory Costs Automatically

To set up the program to post inventory costs to the general ledger every time you post an inventory transaction:

  1. Open the Inventory Setup window.

  2. Place a check mark in the Automatic Cost Posting field.

For each inventory transaction that you post, the program posts the appropriate values to the inventory account, adjustment account, and COGS account in the general ledger.

Even if you use automatic cost posting, it is still necessary to periodically run the Adjust Cost – Item Entries batch job to ensure that the costs of goods are forwarded to the appropriate outbound transactions, such as sales or transfers. This is especially important in situations where you sell goods before invoicing the purchase of those goods.

If the program encounters an error in the dimension setup while posting the inventory cost to the general ledger, the posting will end with an error.

Posting Inventory Costs Manually

Post inventory costs to the general ledger manually by running the Post Inventory Cost to G/L batch job. When you run this batch job, the program creates G/L entries on the basis of value entries. You can post the entries so that they are summarized per posting group.

When you run this batch job, the program might encounter errors having to do with missing setup or incompatible dimension setup. If the batch job encounters errors in the dimension setup, it overrides these errors and uses the dimensions of the value entry. For any other errors, the batch job skips posting the value entries and lists them at the end of the report in a section titled “Skipped Entries”. To post these entries, you must fix the errors.

To see a list of errors before running the posting batch job, you can run the Post Invt. Cost to G/L - Test report. The test report lists all the errors the program encounters during a test posting. You can then fix the errors, and run the inventory cost posting batch job without skipping any entries.

If you would like to simply get an overview of what values could be posted to the general ledger without actually performing the posting, you can run the Post Inventory Cost to G/L batch job without actually posting the values to the general ledger. You do this by removing the check mark from the Post field on the Options tab of the request form. This way, when you run the batch job, the program only produces the report showing the values that are ready to be posted to the general ledger.

Related Topics

Inventory - G/L Reconciliation



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