Cost Accounting Transactions from Deliveries and Invoices
Nominal Ledger Transactions for outward cost accounting postings can be created when Deliveries are approved, or when Invoices are approved.
Deliveries
To create Nominal Ledger Transactions when Deliveries are approved, switch on the Deliveries check box in the Sub Systems setting in the Nominal Ledger (see step 4 on the Switching Cost Accounting On page). Ensure that the Goods Receipts option in the same setting is also on, so that cost accounting postings are made for both outward and inward stock movements.
The values posted are calculated using the Cost Model specified in the appropriate Item Group or in the Cost Model, Delivery defined in the Cost Model setting in the Sales Ledger. This depends on whether the Item belongs to an Item Group and on whether you are using the Use Item Groups for Cost Model option in the Cost Accounting setting.
The Account credited by such Transactions is determined as follows:
- If you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting, the Stock Account for the Item Group to which the Item belongs will be credited.
- If you are not using the Use Item Groups for Cost Accounts option, or the Item does not belong to an Item Group, the Stock Account in the Account Usage Stock setting will be credited.
The Account debited by such Transactions is determined as follows:
- If you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting, the Cost Account for the Item Group to which the Item belongs will be debited.
- If this is blank, you are not using the Use Item Groups for Cost Accounts option, or the Item does not belong to an Item Group, the Stock Cost Account specified in the Account Usage Stock setting will be debited.
In all cases, the appropriate Stock Cost Account for the Zone of the Customer will be used.
You can only issue Deliveries from Sales Orders, and you cannot raise an Invoice from a Sales Order until you have approved the Delivery. However, you can also enter Invoices directly to the Invoice register, without reference to Sales Orders. When you have specified that outward cost accounting transactions will be created on Delivery, it is recommended that such Invoices (those without a related Sales Order) should also create cost accounting transactions, because there is no Delivery to carry out this task.
For this to happen, ensure that you have switched on the Invoices Update Stock option in the Account Usage S/L setting ('Debtors' card).
! | If you find that Nominal Ledger Transactions are not created from Deliveries despite this having been specified in the Sub Systems setting, the likely cause is that the default Cost Model has been set to None. |
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Invoices
To ensure that outward cost accounting postings are only included in Nominal Ledger Transactions created when Invoices are approved, switch off the Deliveries check box in the Sub Systems setting in the Nominal Ledger (see step 4 on the Switching Cost Accounting On page). Ensure that the Goods Receipts option in the same setting remains on, so that balancing inward cost accounting postings are made.
Next, check that you have switched on the Invoices Update Stock option in the Account Usage S/L setting ('Debtors' card).
If you are using the Use Item Groups for Cost Model option in the Cost Accounting setting, the values posted will be calculated using the Cost Model specified for the Item Group to which the Item belongs. Otherwise (i.e. if you are not using this option, if the Item is not a member of an Item Group, or the Item Group has a blank Stock or Cost Account), the Cost Model, Invoice defined in the Cost Model setting in the Sales Ledger will be used.
The Account credited by such Transactions is determined as follows:
- If you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting, the Stock Account for the Item Group to which the Item belongs will be credited.
- If this is blank, the Item does not belong to an Item Group or you are not using the Use Item Groups for Cost Accounts option, the Stock Account in the Account Usage Stock setting will be credited.
The Account debited by such Transactions is determined as follows:
- If you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting, the Cost Account for the Item Group to which the Item belongs will be debited.
- If the Item does not belong to an Item Group, the Stock Cost Account specified in the Account Usage Stock setting will be debited.
In both cases, the appropriate Stock Cost Account for the Zone of the Customer will be used.
Nominal Ledger Transactions created when Invoices are approved will contain a cost accounting element in the following circumstances:
- You entered the Invoice directly to the Invoice register (i.e. it does not relate to a Sales Order or a Delivery); and
- You raised the Invoice from a Sales Order and no Nominal Ledger Transaction was created from the Delivery (i.e. the Deliveries option in the Sub Systems setting is switched off).
