Determining the Cost of Goods Material Account

This is how the COGS material account is determined:

  1. There is an End User Type on the End User Types form and the COGS Matl account is defined. If this is NOT the case, continue to the next point.
  2. On the Distribution Accounts form, the product code is blank and the warehouse equals the warehouse of the customer order line. The COGS Matl account is defined. If this is NOT the case, continue to the next point.
  3. On the Distribution Accounts form, the product code is NULL and warehouse is NULL. The COGS Matl account is defined. Only the inventory material account is credited for the non-inventory items. This account comes from the Distribution Account, using the same logic as above to determine which Distribution Account to use. The account used during invoicing to record the sales revenue comes from the fields added to the CO line. The account default comes from the End User Type (Sales Non Inventory) on the customer order. If this is blank then it comes from the Accounts Receivable Parameters form (Sales Non Inventory).
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