Transactions in several modules create GL transactions for accounts involved with item costing. This chapter summarizes these accounts.

Inventory Accounts
Describes the inventory accounts used in costing.

Purchasing Accounts
Describes the accounts that track purchase overheads and variances.

Sales Accounts
Lists the accounts used to track Cost of Goods Sold.

Work Order Accounts
Describes the accounts used to track labor rates and variances.

Cost Revalue. This account records the GL impact of item cost changes on inventory. When you change the GL costs for items using Item Cost Maintenance or Item-Site Cost Maintenance, the system automatically creates adjusting transactions. An increase in cost creates a debit to the Inventory account and a credit to the Cost Revalue account.

Inventory. Use this account to maintain inventory value. Inventory accounts can be different for each product line, site, and location within each site. If site/location Inventory accounts are specified, all inventory transactions use them. Otherwise, the product line Inventory accounts are used.

Transactions affecting Inventory accounts include purchase order receipts, work order issues/receipts, sales order shipments, physical inventory counts, and manual inventory transactions. Each transaction affects inventory by creating a GL transaction that either debits or credits the account value.

Inventory Discrepancy. Use this account to post the value of cycle counts or physical inventory differences. Positive count adjustments debit the Inventory account and credit the Inventory Discrepancy account. Negative count adjustments do the reverse.