This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

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 as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

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 as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry when posting indirect costs

Isah uses the 'Purchase cost price' account when permanently processing invoices relating to general business costs. The journal entry is as follows:

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

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

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 as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry

Ledger account	Category	Type	D	C	Sum
Cost price of indirect stock issues	403	10	X		Quantity * FVP or APP
Stock	403	20		X	Quantity * FVP or APP

This ledger account is always used for posting provisional purchase invoices. No search path is used.

Journal entry When provisionally processing an invoice

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

If you process purchase invoices provisionally, you can reclaim the VAT sum more quickly.

Journal entry When permanently processing an invoice

Ledger account	Category	Type	D	C	Sum
Creditors	860	50	X		Invoice sum (Quantity * Invoice price)
Provisional purchase invoices	860	60		X	Invoice sum (Quantity * Invoice price)

This ledger account is always used for posting invoices to receive. No search path is used.

Journal entry When processing the receipt of stock parts

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 FVP/APP - Purchase price)

Journal entry When processing the receipt of parts to order

Ledger account	Category	Type	D	C	Sum
Parts (costs or WIP)	421	10	X		Quantity * Purchase price
Invoices to receive	421	20		X	Quantity * Purchase price

Journal entry When processing the receipt of equipment to order

Ledger account	Category	Type	D	C	Sum
Equipment (costs or WIP)	600	10	X		Quantity * Purchase price
Invoices to receive	600	20		X	Quantity * Purchase price

Journal entry When processing the receipt of external operations to order

Ledger account	Category	Type	D	C	Sum
External operations (costs or WIP)	500	10	X		Quantity * Purchase price
Invoices to receive	500	20		X	Quantity * Purchase price

Remarks

• When processing receipts, the journal entry relating to the purchase order is rolled back.
• When the invoice is received, the sum on the Invoices to receive account is transferred.

Journal entries Upon receipt of invoice

This would be the case for stock replenishment purchases, for example.

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 always used for posting commitments. No search path is used.

Journal entry

Ledger account	Category	Type	D	C	Sum
Goods to receive	410	10	X		Quantity * Purchase price
Commitments	410	20		X	Quantity * Purchase price

Posting point

• Create purchase order

Remark

Upon receipt of the order, the journal entry is reversed.

This ledger account is always used for posting goods to receive. No search path is used.

Journal entry

Ledger account	Category	Type	D	C	Sum
Goods to receive	410	10	X		Quantity * Purchase price
Commitments	410	20		X	Quantity * Purchase price

Posting point

• Create purchase order

Remark

Upon receipt of the order, the journal entry is reversed.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry

Ledger account	Category	Type	D	C	Sum
Indirect hours	201	10	X		Number of hours * AC rate
Labor costs	201	20		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remarks

• Indirect hours are posted when the Posting type for the hour code is set to 'Presence registration - indirect' and the Post to field is set to 'Cycle labor costs', 'Machine cycle costs' or 'Cycle labor and machine cycle costs'.
• You can still add different indirect hours accounts in the hour code settings.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entries when issuing parts from stock

Ledger account	Category	Type	D	C	Sum
Parts (costs or WIP)	400	10	X		Quantity * FVP or APP
Stock	400	20		X	Quantity * FVP or APP

Cost price of stock shipments	401	10	X		Quantity * FVP or APP
Stock	401	20		X	Quantity * FVP or APP

Posting points

• Process part issues from stock
• Create or process shipping note

Remark

If you are working with WIP sales lines, the work in progress is automatically posted when the shipping note is created or processed (but not to the Cost price of stock shipments account).

Journal entry upon receipt of parts after stock purchases

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)

Journal entry when adjusting the stock unit quantity

Ledger account	Category	Type	D	C	Sum
Stock	300	10	X		(Difference between new and old stock) * FVP or APP
Stock difference	300	20		X	(Difference between new and old stock) * FVP or APP

In this example, we have assumed there is a stock increase.

Journal entry when adjusting the stock valuation price

Ledger account	Category	Type	D	C	Sum
Stock	301	10	X		(Difference between new and old FVP/APP) * Technical stock
Revaluation	301	20		X	(Difference between new and old FVP/APP) * Technical stock

Posting points for adjusting the stock valuation price

• Changing the fixed valuation price or average purchase price (J/E 301)
• Mass-changing fixed valuation prices or average purchase prices (J/E 302)
• For parts with the stock valuation method 'Fixed valuation price': when calculating FVPs and calculation prices (J/E 303)

Journal entry upon receipt of production items for an internal production order

Ledger account	Category	Type	D	C	Sum
Stock	430	10	X		Quantity * FVP or APP
Parts (costs or WIP)	430	20/21		X	Quantity * Actual cost price per piece
Operations (costs or WIP)	430	30/31		X	Quantity * Actual cost price per piece
Equipment (costs or WIP)	430	40/41		X	Quantity * Actual cost price per piece
External operations (costs or WIP)	430	50/51		X	Quantity * Actual cost price per piece
Stock order result	430	60		X	Quantity * (Difference between FVP/APP - Actual cost price)

In this example, we have assumed there is a positive, internal production result. We have also assumed that the Transfer WIP for stock order field (Financial form > General tab) is set to 'On production receipt'.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry upon receipt of parts in stock

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

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entries when permanently processing invoice

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
Purchase invoice price difference (if any)	801	30		X	Quantity * (Difference between invoice price/purchase price)

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry

Ledger account	Category	Type	D	C	Sum
Stock	300	10	X		(Difference between new and old stock) * FVP or APP
Stock difference	300	20		X	(Difference between new and old stock) * FVP or APP

Posting point

• Time of changing stock units

Remark

In this example, we have assumed there is a stock increase.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry

Ledger account	Category	Type	D	C	Sum
Stock	301	10	X		(Difference between new and old FVP/APP) * Technical stock
Revaluation	301	20		X	(Difference between new and old FVP/APP) * Technical stock

Posting points

• Changing the fixed valuation price or average purchase price (J/E 301)
• Mass-changing fixed valuation prices or average purchase prices (J/E 302)
• For parts with the stock valuation method 'Fixed valuation price': when calculating FVPs and calculation prices (J/E 303)

Remark

In this example, we have assumed the stock valuation price has increased.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

The manner in which the Stock order result account is used in postings depends on the value of the Transfer work in progress from stock order parameter set on the General tab of the Financial form. When setting this parameter, the following options are available:

On production receipt:

The work in progress of a stock order is transferred automatically. This is done when you run the Process production receipts process for the relevant stock order.

Using Actual Costing module:

The work in progress is not transferred automatically. You can do it manually using the Transfer work in progress process in the Actual costing module. You will have two options, depending on the setting of the Close stock order field: All to stock order result account: When this method is used, the 'Stock order result' and 'Cost price of stock order' accounts collectively determine the production result of the stock order (positive or negative balance). Only internal result to stock order result account: When using this method, the work in progress is posted using the Actual Costing module, and at the same time the 'Stock order result' is posted.

The section below explains the postings made when the 'On production receipt' and 'Using Actual Costing module' settings are active.

Transfer WIP for stock order using the Actual Costing module, and post all to the Stock order result account

When the production receipt is processed, the following posting is made:

Ledger account	Category	Type	D	C	Sum
Stock	430	10	X		Quantity * FVP or APP
Cost price of stock order	430	60		X	Quantity * FVP or APP

When work in progress (WIP) is transferred using the Actual Costing module, the following journal entry is created:

Ledger account	Category	Type	D	C	Sum
Stock order result	900	60	X		Total quantity * Actual cost price
Parts WIP	90	10		X	Quantity * Actual cost price
Operations WIP	900	20		X	Quantity * Actual cost price
Equipment WIP	900	30		X	Quantity * Actual cost price
External operations WIP	900	40		X	Quantity * Actual cost price

In this case, the Stock order result account and the Cost price of stock order account together determine the production result of the stock order (positive or negative balance).

Transfer WIP for stock order using Actual Costing module, and post only the internal result to the Stock order result account

On production receipt:

Ledger account	Category	Type	D	C	Sum
Stock	430		X		Quantity * FVP or APP
To Stock cost price	430			X	Quantity * FVP or APP

When transferring WIP (positive production result):

Ledger account	Category	Type	D	C	Sum
Stock cost price	900		X		Quantity * FVP or APP
To Work in progress	900			X	Actual costs
To Stock order result	900			X	FVP or APP - Costs

Transfer WIP for stock order on production receipt

When the production receipt is processed, the following posting is made:

Ledger account	Category	Type	D	C	Sum
Stock	430	10	X		Quantity * FVP or APP
Parts (costs or WIP)	430	20/21		X	Quantity * Actual cost price per piece
Operations (costs or WIP)	430	30/31		X	Quantity * Actual cost price per piece
Equipment (costs or WIP)	430	40/41		X	Quantity * Actual cost price per piece
External operations (costs or WIP)	430	50/51		X	Quantity * Actual cost price per piece
Stock order result	430	60		X	Quantity * (Difference between FVP/APP - Actual cost price)

Remark

In this example, we have assumed there is a positive, internal production result.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

This ledger account is used only if the Transfer work in progress from stock order parameter on the General tab of the Financial form is set to 'Using Actual Costing module'.

Journal entry

When the production receipt is processed, the following posting is made:

Ledger account	Category	Type	D	C	Sum
Stock	430	10	X		Quantity * FVP or APP
Cost price of stock order	430	60		X	Quantity * FVP or APP

When work in progress (WIP) is transferred using the Actual Costing module, the following journal entry is created:

Ledger account	Category	Type	D	C	Sum
Stock order result	900	60	X		Total quantity * Actual cost price
Parts WIP	900	10		X	Quantity * Actual cost price
Operations WIP	900	20		X	Quantity * Actual cost price
Equipment WIP	900	30		X	Quantity * Actual cost price
External operations WIP	900	40		X	Quantity * Actual cost price

In this case, the Stock order result account and the Cost price of stock order account together determine the production result of the stock order (positive or negative balance).

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entries

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate

Indirect hours	201	10	X		Number of hours * AC rate
Labor costs	201	20		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remark

The actual labor rate is based on the hour code or function group.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remark

The actual machine rate is based on the hour code, machine rates, or capacity group rates.

This ledger account is used as a safety net account... If no other ledger account is found in the financial search path, the account entered here will be selected.

Journal entry

Ledger account	Category	Type	D	C	Sum
Operations (costs or WIP)	200	10	X		Number of hours * Actual total rate
Labor costs	200	20		X	Number of hours * AC rate
Machine costs	200	30		X	Number of hours * AC rate
Overhead costs	200	40		X	Number of hours * AC rate

Posting point

• Process hours in the Time Registration module

Remark

The actual overhead rate is based on the capacity group.