How Product Line Accounts Post to the General Ledger

Use the table below to determine how transactions post to the accounts you set up in Product Line Maintenance.

G/L Account	Debited when...	Credited when...
Inventory	You receive items in inventory.	You sell or issue items from inventory.
Cost of Goods Sold	You sell or issue items from inventory (including transactions from IM Transaction Entry)
Sales Income		You issue invoices (offset by debit to A/R)
Sales Returns	You receive returned goods from a customer (S/O credit memo offset by credit to A/R).
Inventory Adjustment	You create an adjustment that increases inventory in Transaction Entry or during the physical count process. A standard valuation item with either 0.00 cost in the item maintenance panel or if you increase the standard cost in a Transaction Entry Receipt will Debit this account.	A decrease in inventory Debits this account.
Purchases Clearing	You process an invoice for the items received and there’s a credit to A/P.	There's a credit to this account when you receive items into inventory.
PO Variance Adjustment	The difference between the invoiced cost and the actual cost received decreases inventory value.	The difference between the invoiced cost and the actual cost received increases inventory value.
MFG Variance Adjustment	The manufactured cost is less than the standard cost from Bill of Materials or Work Order and decreases inventory value.	The manufactured cost of an item from Bill of Materials or Work Order is greater than the standard cost value and increases inventory value.
RMA Scrap	The customer returns an inventory item for scrap
Repairs in Process	A customer returns items for repair, and you select 'Track Repair Items through Inventory' in RMA Options.	When you repair items and ship and invoice to the customer, and you select 'Track Repair Items through Inventory' in RMA Options.
Repairs Clearing	You ship and invoice Repaired items to the customer, and you select 'Track Repair Items through Inventory' in RMA Options.	The customer returns items for repair, and you select 'Track Repair Items through Inventory' in RMA Options.

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