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.

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

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).