Inventory account in expenditure

[Former Member]

Hi,

Can we maintain the inventory account in expenditure.Since expenditure accounts become zero at the end of the year is it advisable

Rgds

[Former Member · Accepted solution]

Hi Rajeev

Under Administration > System Initialization > Company Details > Basic Initialization, there is an option called "Use Purchase Accounts Posting System". When you select this at implementation time, you then define 2 G/L accounts under Cost of Sales (or expenses if you prefer), and all purchases will be posted to Trading Stock, Purchases account and Purchases Offset account. The Purchases and Purchases Offset account will balance to zero by always debiting one and crediting the other.

Kind regards

Peter Juby

[Former Member · Accepted solution]

Hi Peter,

Though the previous system of the client was following purchase account , how can we convert that into SAP B1 cost of goods sold system.He has balances against purchase account but the sap b1 system will not have those purchase accounts .These balances of purchase accounts have to be posted against which account in sap b1.

Rgds,

Rajeev

[Former Member]

Hi Rajeev

No, this is not advisable. What would be your reason for considering this?

Kind regards

Peter Juby

[Former Member]

Hi Peter,

Our client has purchase cost account in expenditure in legacy system.what has to be done in this case.

Rgds,

Rajeev.