Q. Why does the In-Store Inventory Account need to be a Liability Account?
A: The IPS inventory does not carry any value until pulled to a kit. This is why it needs to be a Liability GL account. Because at the time you pull the inventory to a Kit, is the first time a transaction is created in the system and at that point in time the IPS stock that you issued to the kit becomes a liability that you owe to the Supplier per contract.
See attachment <<IPS xtracts.docx>>
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