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.

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).