Inter-Entity Value Variance

Select an account number. This number will be the default account number in the To Site database when there are Receiving transactions from the From Site database.

Transactions will be created for the To Site only when there are cost differences between sites in different divisions.

If Specific costing is used at the To Site and the To Site cost does not equal the cost at the From Site, then the difference would be charged to the Inventory Adjustment account. This is the result of an Inventory Revaluation.

If any other cost method is being used at the To Site and the To Site cost does not equal the cost at the From Site, then the difference would be charged to the Inter-Entity Valuation Variance account. This situation holds true even if the From Site is selling the item or material to the To Site. The profit portion would be charged to its appropriate account at the From Site. The cost portion would be charged to its appropriate account at the To Site.

Note: Entering an account number in this field is optional if you do not plan to use transfers between entities. However, if you do enter an account number, it must be valid in the To Site database.