Setting up inventory-specific accounts

Use these instructions to specify the accounts for proper General Ledger distribution reporting on the balance sheet and income statement.

  1. Select System Administrator > Administration > Administrator Options > Products.
  2. Click Edit.
  3. In the Costs section, specify these settings:
    • In Balance Sheet, specify the method to distribute inventory updates to the balance sheet.
    • In Income Statement, specify the method to distribute sales to the income statement.
  4. Click Save.
  5. Select System Administrator > Administration > Administrator Options > Customers > Defaults.
  6. Select Use Customer Income Statement Accounts. Click Save.
  7. Select Product > Setup > General Ledger Distribution.
  8. Click New.
  9. Select the account type: Income Statement or Balance Sheet.
  10. Based on account type, specify the Product Category and Warehouse.
  11. Click Save.
  12. In GL Accounts section, specify the appropriate accounts.
  13. Click Save.
  14. Select Customer > Setup.
  15. Select a customer record to assign GL income statement accounts to.

    These accounts are updated during Sales Entry Invoice Processing Report instead of the default GL income accounts in Product General Ledger Distribution Setup.

  16. On the General Ledger view, specify the GL accounts to update in the Income General Ledger Account section. Click Save.
  17. Generate the Product GL Distribution Master List Report to verify the accounts.