Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Both sides previous revision Previous revision
using_average_costing_with_inventory [2019/08/08 16:55]
admin 		using_average_costing_with_inventory [2019/08/08 17:04] (current)
admin
Line 35: Line 35:
  
 |Account||Debit||Credit||Part||Quantity||Bill|| |Account||Debit||Credit||Part||Quantity||Bill||
-|Widget inventory Asset|| $ 360.00||   ||Widget||300||1234||+|Widget Inventory Asset|| $ 360.00||   ||Widget||300||1234||
 |Accounts Payable||   || $ 360.00||   ||   ||1234|| |Accounts Payable||   || $ 360.00||   ||   ||1234||
 \\ \\
Line 44: Line 44:
 {{::cost_average_formula_5_.png?nolink|}} {{::cost_average_formula_5_.png?nolink|}}
 \\ \\
-Since the change in inventory value does not equal the amount of the new bill, the overage (or shortage) is immediately expensed into the GL Account - Inventory Adjustments. The GL activity for this would be:+Since the change in inventory value does not equal the amount of the new bill, the overage (or shortage) is immediately expensed into the expense account specified on the Part (i.e. Material Expense). The GL activity for this would be:
  
 |Account||Debit||Credit||Part||Quantity||Bill|| |Account||Debit||Credit||Part||Quantity||Bill||
 |Widget inventory Asset|| $ 330.00||   ||Widget||300||1234|| |Widget inventory Asset|| $ 330.00||   ||Widget||300||1234||
-|inventory Adjustments|| $ 30.00||   ||   ||   ||1234||+|Material Expense|| $ 30.00||   ||   ||   ||1234||
 |Accounts Payable||   || $ 360.00||   ||   ||1234|| |Accounts Payable||   || $ 360.00||   ||   ||1234||
 \\ \\
Line 58: Line 58:
 \\ \\
 \\ \\
-Changing the existing cost will revalue the existing inventory (by $0.10 each times a quantity of negative 15 ), which must be taken into consideration. The overage (or shortage) is immediately expensed into the GL Account - Inventory Adjustments. The GL activity for this would be:+Changing the existing cost will revalue the existing inventory (by $0.10 each times a quantity of negative 15 ), which must be taken into consideration. The overage (or shortage) is immediately expensed into the expense account specified on the Part (i.e. Material Expense). The GL activity for this would be:
  
 |Account||Debit||Credit||Part||Quantity||Bill|| |Account||Debit||Credit||Part||Quantity||Bill||
-|inventory Adjustments|| $ 1.50||   ||   ||   ||   ||+|Material Expense|| $ 1.50||   ||   ||   ||   ||
 |Widget inventory Asset||  || $ 1.50||Widget||   ||   || |Widget inventory Asset||  || $ 1.50||Widget||   ||   ||
 |Widget inventory Asset|| $ 360.00||   ||Widget||300||1234|| |Widget inventory Asset|| $ 360.00||   ||Widget||300||1234||