General Ledger updates
Orders that are created for products in a Storeroom-managed warehouse can contain a mix of customer- and distributor-owned inventory. When the sales order is created, the customer-owned inventory is issued first. A separate line with a zero price and cost is created for it.
When a sales order line for customer-owned inventory is invoiced, no GL postings are made to inventory control accounts or to the customer’s AR accounts. If Yes is specified for Update Sales Manager? on the Sales Entry Processing Invoice Processing Report, these files are not updated for sales order lines marked with a C inventory type. The inventory has already been purchased by the customer and it carries no value on your balance sheet.
Distributor-owned inventory on a sales order is processed as typical sales orders. GL postings for sales order lines marked with a D inventory type are made during sales invoice processing.
See information about GL updates that are performed during invoice processing in the online help.
You can print invoices with or without customer-owned products. To include the customer lines, Print Customer Lines on Invoice must be selected in Product Warehouse Description Setup-Storeroom. Customer-owned products show a zero price on invoices.