Purchase & Sales Entry Type in Item Journal

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I tried to understand where can i use “PURCHASE” & “SALES” Entry type in “ITEM JOURNALS”, but i din’t get the full answer. I got an answer from this online book. [INVENTORY MANAGEMENT IN MICROSOFT DYNAMICS NAV 5.0]

The item journal can be used to post the following four types of item entries:

  • Purchase – to post a positive inventory adjustment that works as a purchase order transaction.
  • Sale – to post a negative inventory adjustment that works as a sales order transaction. .

But i want clearer and broader answer [Z] …I need to convince my Client on the objective of these options in practical application/ Usage [{] .

Please Provide References if you have an answer [Y] .

Thank you! [8-|]