Accounts in Inventory Org

[kommineni7]

Hi Gurus,

while creating the inventory org, we are tryign to fill Valuation accounts.
Could you please tell me for which type of transaciton this accoutns will hit.

Inventory org>>inventory info>>Valuation Accounts>>

Material account
Outside processing
Material Overhead
Overhead
Resource
Expnese.

Please guide me, we are in confusion to fill this accounts. we are creating New Multiorg in R12 enviornment.

Thanks in advance,
Venkatesh

[hiszaki]

HI Venkatesh

These accounts defined as a default accounts in each inventory organization to be used in the inventory transactions.
1) Material account, when you received any item defined as costed item (like material) this account will be used in the receiving & issue this material from this inventory.

2) Expense account, when the inventory defined to be as expense inventory (not track the quantity & the item cost = 0) then this account will be used in the inventory transactions (receipt & issue) according to accounting rule.

3) Other accounts, according to my knowledge these accounts used in the costing module + manufacturing modules (WIP mainly) so in you don't use the manufacturing modules you can setup these accounts for fill the fields.

These accounts will be mandatory is the inventory organization cost will be average but if you will use the standard cost the material account only is mandatory & the others will be optional.

Thanks
Hisham

[kommineni7]

Thanks Hisham

need some clarification..

Relating to Material, Expnese accounts - As per you replay it will be used to receipt and issue of materials.

so that means, once we created the delivery (after PO>receipt in po>deliver), this account will be debited right?

Thanks,
Venkatesh