Query on inventory write offs
Posted: Tue Nov 02, 2010 1:38 pm
Hi All,
Accounting entry for inventory write-offs is
AP accrual a/c -------DR
To Offset a/c -------CR
The write off process works fine, but doubt is How does system derives the offset account. After some research I could find the system will pick the Purchase variance account from the PO and uses same as Offset account. Purchase variance account is derived from the inventory organization accounts setup.
Now the question is why system is using the variance account as offset account
Accounting entry for inventory write-offs is
AP accrual a/c -------DR
To Offset a/c -------CR
The write off process works fine, but doubt is How does system derives the offset account. After some research I could find the system will pick the Purchase variance account from the PO and uses same as Offset account. Purchase variance account is derived from the inventory organization accounts setup.
Now the question is why system is using the variance account as offset account