Create / Edit Inventory item types
Default (Trading inventory) Inventory type:
The entries for the Default (trading inventory) inventory item type is as follows:
Trading inventory items (Default inventory item type) |
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Purchases (Purchase journal) |
Invoices (Sales journal) |
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DR |
Inventory item (net cost price - Input Tax Excluded) |
DR |
Customer (full amount - Output Tax Included) |
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DR |
Input Tax (% of purchase price) |
CR |
Sales (selling price - Output Tax Excluded) |
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CR |
Vendor (full amount - Input Tax Included) |
CR |
Output Tax (% of selling price) |
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Cost of sales journal |
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DR |
Cost of sales (cost price) |
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CR |
Inventory (cost price) |
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The transactions for Supplier returns (Credit notes received from vendors) are exactly the opposite than those of purchase documents (Invoices received from vendors).
The transactions for Credit notes (issued to customers) are exactly the opposite than those of Invoices.
Trading inventory items (Default inventory item type) |
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Supplier returns (Purchase journal) |
Credit notes (Sales journal) |
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DR |
Vendor (full amount - Input Tax Included) |
DR |
Sales (selling price - Output Tax Excluded) |
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CR |
Inventory item (net cost price - Input Tax Excluded) |
DR |
Output Tax (% of selling price) |
||
CR |
Input Tax (% of purchase price) |
CR |
Customer (full amount - Output Tax Included) |
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Cost of sales journal |
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DR |
Inventory (cost price) |
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CR |
Cost of sales (cost price) |
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All other inventory types (excluding the Bills of Materials (BOM) inventory item type), have no cost of sales transactions.
Other Inventory item Types:
The transactions are similar to those as entered in the various journals. It is as follows:
Other Inventory item types |
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Purchases (Purchase journal) |
Invoices (Sales journal) |
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DR |
Pre-set / selected purchase (expense or asset) account. (purchase price - Input Tax Excluded) |
DR |
Customer (full amount - Output Tax Included) |
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DR |
Input Tax (% of purchase price) |
CR |
Sales / selected income account (selling price - Output Tax Excluded) |
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CR |
Vendor (full amount - Input Tax Included) |
CR |
Output Tax (% of selling price) |
||
The transactions for Supplier returns (Credit notes received from vendors) are exactly the opposite than those of purchase documents (Invoices received from vendors).
The transactions for Credit notes (issued to customers) are exactly the opposite than those of Invoices.
Other Inventory item types |
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Supplier returns (Purchase journal) |
Credit notes (Sales journal) |
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DR |
Vendor (full amount - Input Tax Included) |
DR |
Sales / selected income account (selling price - Output Tax Excluded) |
||
CR |
Pre-set / selected purchase (expense or asset) account. (purchase price - Input Tax Excluded) |
DR |
Output Tax (% of selling price) |
||
CR |
Input Tax (% of purchase price) |
CR |
Customer (full amount - Output Tax Included) |
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Created with the Personal Edition of HelpNDoc: Benefits of a Help Authoring Tool