Item costs are automatically adjusted when you post item transactions, but you can also adjust item costs manually. For more information, see How to: Reconcile Inventory Costs with the General Ledger.Įven though inventory costs are automatically posted to the general ledger, it is still necessary to ensure that the costs of goods are forwarded to the related outbound sales transaction, especially in situations where you sell goods before you invoice the purchase of those goods. For each inventory transaction that you post, the appropriate values are posted to the inventory account, adjustment account, and COGS account in the general ledger. To reflect this change of inventory value in your financial books, the inventory costs are automatically posted to the related inventory accounts in the general ledger. When you post inventory transactions, such as sales shipments, purchase invoices, or inventory adjustments, the changed item costs are recorded in item value entries. For more information, see Warehouse Management. The physical handling of items is referred to as warehouse activities.
