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Introduction to Cost Accounting

Many companies will be happy to keep track of stock values by running monthly stock valuation reports, and to update Balance Sheet and cost of sales values monthly using Nominal journals (Nominal Ledger Transactions). However, some companies may want these values to be kept constantly up to date, with the benefit that accurate Balance Sheets and Profit & Loss reports can be produced at any time. You can configure HansaWorld Enterprise so that Nominal Ledger postings will be generated automatically when you approve each incoming or outgoing stock transaction, immediately updating stock valuations in the Nominal Ledger. This feature is known as "cost accounting". In the case of outgoing stock transaction (Cost of Sales postings), you can choose to have these created when you approve Invoices or when you approve Deliveries.

For cost accounting transactions to take place, the Items concerned usually must be Stocked Items , although there is an option to create cost accounting transactions for Plain and Service Items as well. Once you have configured HansaWorld Enterprise as described here, cost accounting will take place automatically.