Hi all! Please I need some explanations: I have an Item Item ABc that is linked with Gen Prod. PG = “PARTS”; Gen. Bus. PG = “”, Inv Posting group = “ROT” 1. When I go to Gen Posting set up for that Gen Prod PG , what are differences between these accounts: COGS account, Direct cost applied account, Invt. Accrual Acc. (Interim), that I dont understand differences with Purchase account. 2. When I go to inv Posting set up for that Inv Posting group, I have "Inv account interim ", what is the purpose? 3. Difference between WIP in the Inv Posting set up and WIP in the Job posting set up? When to use WIP in the INV posting set up?? Thanks for help.
How large a topic! Okay real quick here; Any “interim” account is to do with “expected costing” where you do not know the actual final cost of the item. Have a look at this setting in the inventory setup. Purchases are for the purchases you buy, cost of goods sold are for the cost of goods sold, if you hold stock you natually have a difference here. In manual systems and for accountants not integrating the inventory costings to accounts they will take the opening stock figure, remove the cost of sales and add the purchases to get a manual closing stock figure and therefore opening figure for the next period. The Direct Cost applied contras the purchases but can differ in circumstances. WIP in inventory is for Production WIP, the one against jobs is for the recognition of WIP against a job. I suggest you run through some transactions, step by step and analyse where the GL entries are going, you will then see when an account is hit.