General Ledger accounts are updated by transactions you post in Order Entry.
The accounts are grouped in this article according to theSage 300 modules in which they are assigned.
| Account | Description |
|---|---|
|
Inventory Control |
An asset account containing the total value of the inventory on hand (at actual cost). The account increases when you receive goods, and decreases when you ship goods. The word "control" in the account name means that the account contains only totals, whereas the information stored by Inventory Control contains details on an item-by-item basis. When you process all accounting entries correctly, the total cost of the inventory in Inventory Control equals the totals in the Inventory Control accounts in the general ledger. |
|
Payables Clearing |
A suspense account to which Inventory Control posts the "other side" of the accounting entries for inventory you receive (and for previous receipts you return to suppliers). Inventory Control normally generates credit entries to this account for inventory you receive; therefore, the account can be thought of as the accrued amount payable for goods received into inventory. Inventory Control debits this account when you enter receipt returns. As you post the related vendor invoices in Accounts Payable, offsetting journal entries (debits) related to the inventory purchased are generated against the Payables Clearing account to clear the balance that is left in this account from posting the inventory receipt. |
|
Adjustment Write-Off |
The account to which you post inventory adjustments and write-offs. Entries to this account are normally expenses (debits); therefore, the account number you specify should be in the expenses or cost of goods sold section of your general ledger. |
|
Assembly Cost Credit |
The account to which you post the variable and fixed costs of assembling items. credits this account with the variable and fixed cost of assembly. You may want to create manual entries in the general ledger to redistribute the assembly cost credit to accounts such as labor costs. |
|
Non-stock Clearing |
The account you credit when you ship non-stock items, and debit when you enter shipment returns for non-stock items. You can use non-stock items to handle specially ordered items that you do not stock in your inventory, and to handle service charges that appear on invoices. |
|
Transfer Clearing |
This account is used for the additional cost amount on the Transfer screen. |
|
Shipment Clearing |
Debited instead of Cost of Goods Sold when shipping goods from Order Entry. The Shipment Clearing account is required because the shipment and invoicing functions in Order Entry are separated. Cost of Goods Sold is debited when you invoice the shipment. |
|
Disassembly Expense |
Used if you specify an expense amount when you disassemble items that were previously assembled in Inventory Control. |
|
Physical Inventory Adjustment |
The expense account that balances the change in inventory value when you adjust inventory quantities after making a physical inventory count. |
|
Credit/Debit Note Clearing |
Debited instead of the I/C Control account or the Damaged Goods account in Order Entry returns sent to Accounts Receivable. The general ledger transaction credits the clearing account instead of Cost of Goods Sold and the Accounts Receivable Control account. The Credit/Debit Note Clearing account is required because the inventory return and credit note functions in Order Entry are separated, with one side of the transaction going through Accounts Receivable. |
For each category that you add in Inventory Control, you specify general ledger account numbers for the following five accounts.
Note: Order Entry uses the Sales, Returns, and Damaged Goods accounts, which are not used by Inventory Control.
| Item Category | Description |
|---|---|
| Sales | A revenue account that Order Entry credits with the revenue from goods sold. |
| Returns | A contra revenue account that Order Entry debits to record the reduction of revenue caused when previously sold goods are returned or credit notes are issued. |
| Cost of Goods Sold | An expense account that Inventory Control debits with the cost of goods sold, and credits with the cost of goods returned. |
| Cost Variance | An expense account in which Inventory Control records the cost variance between the actual cost and either the standard cost (for items using the standard costing method) or the most recent cost (for items using the most recent costing method) of inventory items sold. |
| Damaged Goods | A contra revenue account that is debited instead of Sales Returns whenever goods are returned as damaged in Order Entry. |
| Internal Usage | The default expense or asset account that is debited when an item in this category is used internally. You can override this account when you enter transactions. |
You specify the following accounts when you add miscellaneous charges to Order Entry.
| Charges | Description |
|---|---|
| Miscellaneous Charge Revenue | The general ledger revenue account to which amounts entered as miscellaneous charges are posted. |