item charge dimensions

gemini_shooter

Hello All,

What is the use of assigning dimensions to item charges.

I ask this because the charge cost flows into the item and is then posted to income statement through the post cost to G/L. Is that correct?

If so, I only see the item charge on the inventory accounts, for that purpose do I still need dimensions on item charges or I can operate without them and still obtain a true cost of the inventory from the inventory accounts?

Any help is appreciated.

gemini_shooter

I think wasn't clear on my question. Let me explain a little more

For e.g. I have

--Item A (Dimension: RAW)

--Item Charge (Dimension: CHARGE)

Step 1

PO 1 (Buying Item A) (Entry)
Purch Acc. DR -- AP Acc <CR> (Dimension RAW)

PO 2 (Freight Charge for Item A above) Entry
Purch Acc. DR -- AP Acc <CR> (Dimension CHARGE)

Step 2
Run Adjust Cost
(Updates Unit Cost on Item A)

Step 3
Sell Item A Entry
Sales Acc <CR> -- AR DR (Dimension RAW)

Step 4
Run Post Cost to G/L

Inventory Acc <CR> COGS DR (Dimension: RAW)

So is it safe to say that item charges dimensions only stay in the inventory accounts and never move to income statement by themselves, but only through items ?

Which brings me to the second questions, What is the use of assigning dimensions to item charges ?