Posting Groups - Inventory Adjustment, COGS and Direct Cost

Saritha

Could any one explain me the use of Inventory Adjustment account, COGS account and Direct Cost Applied Account in the General Posting Setup in Financial Management.

Thank You

Saritha

DenSter

Have you tried F1 help? As limited as it is, it often has excellent functionsal descriptions.

ameen

COGS account : To post the inventory decrease due to sales to the income statement.

This account will effect only when u do the sales transactions that means sales invoice.

Inventory Adjustment account : To post inventory increases and decreases occurred due to adjustments, revaluations and rounding to the income statement.

This account will effect when u use Item journal , Revaluation journal, transfer order , Item reclassification journal.


Direct Cost Applied account : To post the direct costs to the income statement.

This account will effect only when u do the purchase transactions that means purchase invoice.