This is where user sets up the default Inventory General Ledger numbers.   Enter the default accounts associated with Inventory  and these numbers will be available during routine entry of data.

The inventory account should be an Asset account, normally under Current Assets.  The Cost adjustment account should be an Income/Expense account, normally under Cost of Goods or Inventory Adjustments.  Asset Accounts are Balance Sheet accounts and are shown on that statement, Income/Expense accounts are on the Income statement.

So if you have a cost adjustment to reduce inventory by $500 you are saying that you have $500 less than you should so that has to be expensed and recognized in the Profit and Loss, the transaction would be:

                                    Debit                 Credit

Cost Adjustment            500.00

Inventory                                               500.00

The Inventory account would be reduced by $500.00, the total of all of the inventory accounts (Raw Goods, Finished goods, etc) would be reduced by $500, the total Current Assets would be reduced by $500 and the Total Assets would be reduced by $500, Current earnings would be reduced by $500 and Total Liabilities would be reduced by $500.

On the income statement, the Cost adjustments would be increased by $500, depending what category the put the account, the sub total of that group would increase by $500, gross income would be reduced by $500 and total income would be reduced by $500.00

That you are using within the Sales Types.  

We have had a case where a customer happen to have the same GL account for COGS - Direct Labor that was associated to a Type also loaded within the Inventory Setup Labor field.  This would causing their COGS to be $'s short.  

 

 

Instore Inventory Account	This G/L account is used if a Supplier has inventory stored at your site but title to that inventory has not yet passed.  ManEx strongly suggests setting this up as a Liablility Account.  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 Article #3268 for further detail.
Raw Material Inventory	This G/L account is used for inventory purchases.
Work in process inventory	This G/L account is used for all components once the kit has been issued until the final assembly reaches the Finished Goods Inventory Work Center.
Unreconciled Receipt	This G/L account is used for all purchase orders that have been received but not reconciled and/or transfered to Accounting.
Finished Goods Inventory	This G/L account represents a completed assembly – ready to ship.
Labor	This G/L account is for labor configuration when product is transferred into FGI.
Overhead	This G/L account is for overhead configuration when product is transferred into FGI.
Other Costs	This G/L account is for other costs configuration when product is transferred into FGI.
User Defined	This G/L account is for user defined configuration when product is transferred into FGI.
Purchasing Variance	This G/L account is where the Purchase Order Price differs from the Standard Cost per the Inventory Master. Indicate the General Ledger account where you want the differences posted.  The Purchase Price Variance is a Balance Sheet account classified under Inventory, Raw Materials.
Configuration Variance Account	This G/L account is where the sum of the components listed in the Bill of Materials is not equal to the Standard Cost per the Inventory Master for the Product. Indicate the General Ledger account where you want the differences posted.
Manufacturing Variance Account	This G/L account is where more components are used in the assembly than called for in the Bill of Materials. Indicate the General Ledger account where you want the differences posted.
Shrinkage/Scrap Account	This G/L account is the account you want to use when items have to be scrapped or they were shop worn, broken, etc.
Rounding Variance Account	This G/L account is would be the difference between the standard cost calculation and the actual kit issuance.  Note that the Rounding Variance for any given component cannot exceed the standard cost of the component, because the rounding would bring the component to the next higher quantity.  This variance may seem small (non-existent in the case of large lots) but does add up over time to significant values.  This field MUST be setup before the users can close a Kit.
Inventory Adjustment Account	This G/L account gathers information from the Cycle Count, and Physical Inventory modules. The values entered are the offsets of the values actually made to inventory accounts.  When user changes the value of inventory by adding or removing value (by change in inventory counts), we have to record the other side of that transaction somewhere, and it goes to this account.
Inventory Standard Cost Account	This G/L account gathers infomation from the Std Cost Adj module. When user changes the value of inventory by adding or removing value (by change in standard cost), we have to record the other side of that transaction somewhere, and it goes to this account.  If this field is left blank any transaction made from the Std Cost Adj module will default in the same GL account number that is already used within the Inventory Adjustment account so no data will be lost if the users neglect to populate this field with a new GL account number.

 

Enter SQLACCTSETTING.EXE  (within the ManEx root directory)    This action will then prompt the user for a password
The following screen will be displayed,  enter the Inventory Setup

The following screen will be displayed:

 

If you have the Multi-Plant version of Manex, prepare defaults for each division set up previously in G/L Divisions /Departments .

It is up to the users to establish a G/L account for the Rounding Variance account.  A G/L account MUST be established for this account. If this field is left blank when users transfers product to/from the FGI or Scrap work center in Shop Floor Tracking they will receive the following message:   

It is up to the users to establish a G/L account for the Inventory Standard Cost account. This gives the user the option to have the Cost adjustment and Inventory adjustment broken out to hit two seperate G/L accounts.   If this field is left blank any transaction made from the Std Cost Adj module will default in the same GL account number as the Inventory Adjustment account, so no data will be lost if the users neglect to populate this field with a new G/L account number. 

 

The InStore Inventory Account should be a Liability Account.   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 Article #3268 for further detail.

The inventory account should be an Asset account, normally under Current Assets.  The Cost adjustment account should be an Income/Expense account, normally under Cost of Goods or Inventory Adjustments.  Asset Accounts are Balance Sheet accounts and are shown on that statement, Income/Expense accounts are on the Income statement.

So if you have a cost adjustment to reduce inventory by $500 you are saying that you have $500 less than you should so that has to be expensed and recognized in the Profit and Loss, the transaction would be:

Cost Adjustment 500.00

Inventory 500.00

The Inventory account would be reduced by $500.00, the total of all of the inventory accounts (Raw Goods, Finished goods, etc) would be reduced by $500, the total Current Assets would be reduced by $500 and the Total Assets would be reduced by $500, Current earnings would be reduced by $500 and Total Liabilities would be reduced by $500.

On the income statement, the Cost adjustments would be increased by $500, depending what category the put the account, the sub total of that group would increase by $500, gross income would be reduced by $500 and total income would be reduced by $500.00