ID759 - Inventory Items With Conflicting Accounts Overview & Sample

This process will ensure your Sales and Service codes are not tied back to conflicting GL revenue and COG accounts.  Items should have matching revenue GL and COG accounts regardless of the process that is used to relieve inventory.

The COGS and Revenue GL accounts should be identical. Otherwise you will be recognizing revenue an/or costs differently depending on the transaction type (i.e. SalesOrder vs. Service Call).


(right click on image to enlarge)

Left Column indicates what is different - COGS or Revenue. If ItemRecord has both Revenue and COGS differences, ItemRecord will be listed twice (once for COGS and once for Revenue).




Below are screen shots of same ItemRecord, but Sales Code has Revenue GL# 307000 and COGS GL# 40600, whereas Service Code has Revenue GL# 302000 and COGS GL# 407000. The Sales Code Revenue and COGS GL#'s should be the same as Service Code Revenue and COGS GL#. (When they are not the same a Sales Order for this Item will send Revenue to 307000 and COGS to 406000; whereas, a Service Call for this Item will send Revenue to 302000 and COGS to 407000.



**We don't know if your codes are correct, we are just comparing Sales Code to Service Code GL's and alerting of that that are different. You will need to weigh your cost benefit to determine if a Journal Entry to correct past entries is worthwhile or not. For example, if you sold 100 machines each worth $20,000.00, then you may want to consider a journal entry to correct the past entries.**


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