Create accounting strings for inventory valuation variances

Before you start

You must specify the inventory valuation account and debit and credit accounts for inventory valuation variances in 'Accounting Identity. Open' (CRS630).

Follow these steps

1. Start ‘Settings - Inventory Value Variances’ (CAS020/B).
2. Specify the inventory account. Click Create.
3. On the E panel, specify the inventory adjustment account for the balance transaction and the value adjustment account for the income account. These are used to record the variance between the calculated inventory value and the recorded value.
4. Specify the value adjustment for the obsolescence account for the balance account and income account. These are used to record the obsolescence value, representing the cost of destroyed and lost items in the warehouse.
5. Select which other accounting dimensions are used. Press Enter.