Check this at Account > Posting Setups > Inventory Accounting Setup


Inventory Accounting Setup will be used to define specific GL accounts item related postings. The Inventory Accounting Group name will be mapped with Item Master along with Location.

 

For example, if businesses have different nature of Products then it needs different posting structure to handle the transactions in GL accounts so that user can have deep insights about profit and loss of different type of products of the business.


Now take the same case which is explained at general accounting setup , and we have two inventory group as follows

  • Home Appliances Group
  • Mobiles Group

In new New Delhi Location / Warehouse.


The above can be created at Account > Posting Groups > Inventory Posting Groups.


Inventory Accounting Setup (Account > Posting Setups > Inventory Accounting Setups):


Doc No:

Name*

Inventory A/c Group

Location Code*

Inventory A/c (Assets)

Default Expense A/c (Expenses)

Default Income A/c (Incomes)

Work In progress (Assets)

Production Overheads (Expenses)
IAS1
 Default Posting Setup  Default Inventory Group Default Location
 Temp A/c Temp A/c
 		Temp A/c Temp A/c Temp A/c

IAS2

 Home Appliances Posting Setup
 Home Appliances
 New Delhi Stock (Home Appliances) A/c
 		Stock Expenses A/c
 		Stock Income A/c
 WIP A/c Productions Overhead A/c
 IAS3  Mobile Phone Setup Mobiles Group  New Delhi Stock (Mobiles) A/c Stock Expenses A/c Stock Income A/c  WIP A/c  Productions Overhead A/c


  • B (Vendor) mapped with Trading Business (TB) and Trading Vendor A/c Setup (VAG1).
  • P1 (Item) mapped with Home Appliances Group and Trading Products(TP) .
  • P2 (Item) mapped with Mobiles Group and Trading Products(TP).
  • P1 and P2 (Items) are bought from B (Vendor) for USD 1000 and USD 500 respectively.   

Based on the accounting setup, system will identify the corresponding GL accounts to post values.


Then Accounting journal will be as follows for 


Item inward entry for the above case:

  • Item received but not billed A/c (Trading) -USD 1500 Credit
  • Stock (Home Appliances) Ac - USD 1000 Debit
  • Stock (Mobiles) Ac - USD 500 Debit


.Purchase Invoice Receipt entry

  • AP (Trading) A/c - USD 1500 Credit
  • Item received but not billed A/c (Trading) -USD 1500 Debit