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Introduction to Cost Accounting

Some companies will be happy to keep track of stock values by running monthly stock valuation reports from the Stock module, and to update the stock valuation in the Nominal Ledger by posting Balance Sheet and cost of sales values monthly by journal (i.e. using Nominal Ledger Transactions). Other companies may want these values to be kept constantly up to date, with the benefit that accurate Balance Sheet and Profit & Loss reports can be produced at any time. You can configure Standard ERP so that Nominal Ledger postings will be generated automatically from each incoming and outgoing stock transaction (e.g. from each Goods Receipt and Delivery), immediately updating stock valuations in the Nominal Ledger. This feature is known as "cost accounting".

For cost accounting postings to be made, the Items concerned usually must be Stocked Items , although there is an option to create cost accounting transactions for Plain and Service Items<