Hello
When doing a new STE manufacture (purpose), when we select a source or target item, the difference account head chosen in the item is usually “stock adj”. But sometimes the difference account is chosen as “Cost of Goods sold” AH.
Why does this happen. Since “Cost of Goods Sold” is a P&L AH and should be touched automatically when a Sale happens, by the system, i am expecting it should not be touched in the STE manuf entries.
Image of stock adj acct selected in item when a new STE with manuf is created
I thought may be the default WH in an item if different from the WH where the manuf is happening is causing it may be the issue. But its not.
But i have seen, that if i choose the items from a BOM, the AH becomes Cost of Goods sold, instead of Stock Adj.
Pls let us know if we need to fix this, or its working appropriately. Because after submission of the STE, if we see Account ledger, if there is a change in valuation rate of the item, the difference is being booked in cost of goods sold.
System pick up the default expense account from the item master and if there is no expense account in item master, then it pickup the default expense account(Default Cost of Goods Sold Account) from the company master. I think instead of default expense account we should pickup the stock expense account head from the company. Can you please create the github issue for the same?
Hi @rohit_w To fix this issue can i do the below change.
In the Item, ‘Purchase details’ section, i set the default expense account to be “stock adjustment”.
Will there be any side affects.
Thank you @rohit_w . We will update all items to point to stock adjustment AH, as the expense eaccount in the purchase section of Item.
Appreciate your help.
