This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entries when making stock replenishment purchases

The Cost price of stock purchases account is used as a suspense account when making stock replenishment purchases. Upon receipt of the stock items, the posting procedure will be as follows:

Ledger account	Category	Type	D	C	Sum
Stock	420	10	X		Quantity * FVP or APP
Invoices to receive	420	30		X	Quantity * Purchase price
Price differences (if any)	420	20	X	X	Quantity * (Difference between purchase price and FVP/APP)

When permanently processing the invoice, the following journal entries are created:

Ledger account	Category	Type	D	C	Sum
Cost price of stock purchases	800	20	X		Quantity * Invoice price
Creditors	800	10		X	Quantity * Invoice price
+
Invoices to receive	801	10	X		Quantity * Purchase price
Cost price of stock purchases	801	20		X	Quantity * Invoice price
Price differences (if any)	801	30	X	X	Quantity * (Difference between invoice price/purchase price)

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entries when making sales line purchases

If the sales line origin is 'Purchase', the following journal entry is created upon receipt of the parts:

Ledger account	Category	Type	D	C	Sum
Cost price of sales line purchases	422	10	X		Quantity * Purchase price
Invoices to receive	422	20		X	Quantity * Purchase price

When permanently processing the invoice, the following journal entries are created:

Ledger account	Category	Type	D	C	Sum
Cost price of sales line purchases	800	22	X		Total invoice sum
Creditors	800	10		X	Total invoice sum
Invoices to receive	803	10	X		Total purchase sum
Cost price of sales line purchases	803	20		X	Total purchase sum

Remark

If you are using WIP sales lines (General, Settings, Financial), this account will not be used. The sum is posted to the Parts WIP account.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry

Ledger account	Category	Type	D	C	Sum
Cost price of stock shipments	401	10	X		Quantity * FVP or APP
Stock	401	20		X	Quantity * FVP or APP

Posting points

• Create shipping note
• Process shipping note

Remarks

• This posting is valid if the sales line origin is 'Stock'.
• When the shipping note is processed, any differences in quantities are corrected.
• If you are using WIP sales lines (General, Settings, Financial), this account will not be used. The sum is posted to the Parts WIP account.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entries

Ledger account	Category	Type	D	C	Sum
Debtors	100	10	X		Quantity * Sales price
Turnover (Production or Stock)	100	22/23		X	Quantity * Sales price
Debtors	100	10	X		Periodic sum based on periods entered
Period turnover	100	21		X	Periodic sum based on periods entered
Debtors	100	10	X		Quantity * Sales price
Provisional turnover	100	20		X	Quantity * Sales price

Posting points

• Create invoice
• Create periodic invoice

Remarks

• The first journal entry is created at the posting point 'Create invoice'; the second is created at the posting point 'Create periodic invoice'; and the third is created at the posting point 'Create invoice'.
• Provisional turnover can be used only if WIP is used.

This ledger account is used in the journal entry below, unless a different ledger account has a higher priority in the applicable financial search path.

Journal entry when provisionally processing an invoice

Ledger account	Category	Type	D	C	Sum
Provisional purchase invoices	860	20	X		Quantity * Invoice price
Creditors	860	10		X	Quantity * Invoice price

If your company uses provisional invoices, an adjusting entry for the provisional processing is made when the invoice is processed permanently.

Journal entry when posting a purchase invoice for general costs

Ledger account	Category	Type	D	C	Sum
Cost price of direct purchase costs	800	60	X		Quantity * Invoice price
Creditors	800	10		X	Quantity * Invoice price

If the invoice is a general costs invoice, you can enter an alternative general ledger number.

Journal entry when posting a purchase invoice for stock parts

Ledger account	Category	Type	D	C	Sum
Cost price of stock purchases	800	20	X		Quantity * Invoice price
Creditors	800	10		X	Quantity * Invoice price
+
Invoices to receive	801	10	X		Quantity * Purchase price
Cost price of stock purchases	801	20		X	Quantity * Invoice price
Price differences (if any)	801	30	X	X	Quantity * (Difference between invoice price/purchase price)

The Cost price of stock purchases account is used as a suspense account when making stock replenishment purchases.

Journal entry when posting a purchase invoice for parts to order

Ledger account	Category	Type	D	C	Sum
Parts (costs or WIP)	800	21	X		Quantity * Invoice price
Creditors	800	10		X	Quantity * Invoice price
+
Invoices to receive	802	10	X		Quantity * Purchase price
Parts (costs or WIP)	802	20		X	Quantity * Invoice price

Journal entry when posting a purchase invoice for equipment

Ledger account	Category	Type	D	C	Sum
Equipment (costs or WIP)	800	40	X		Quantity * Invoice price
Creditors	800	10		X	Quantity * Invoice price
+
Invoices to receive	821	10	X		Quantity * Purchase price
Equipment (costs or WIP)	821	20		X	Quantity * Purchase price

Journal entry when posting a purchase invoice for external operations

Ledger account	Category	Type	D	C	Sum
External operations (costs or WIP)	800	30	X		Quantity * Invoice price
Creditors	800	10		X	Quantity * Invoice price
+
Invoices to receive	810	10	X		Quantity * Purchase price
External operations (costs or WIP)	810	20		X	Quantity * Purchase price