In this blog we will discuss in brief how accounting effect of IC transactions, like IC Receipts, IC Shipment, IC Internal uses IC Transfers and IC Assemblies.
During IC Receipt:
-Stock Account i.e. inventory control account gets debited.
-Payable Clearing Account – Credited (A Payable Credit account is an account which has credit effect at the time of IC or PO receipt and has Debit effect at the time of PO invoice.
Note: (Additional costs of IC receipt are added to the stock account and Payable Clearing Account as Debit and Credit respectively)
New Stuff: Document numbering Based On Optional Field
Use of IC receipt & IC Shipment: Sage 300 ERP provides only the modules as per the customer requirements. Suppose a Customer doesn’t have a PO module and OE Module but has the IC Module, the customer can maintain its inventory control through IC Shipment and IC Receipt.
During IC shipment :
-Payable Clearing Account-Debited
-Stock Account i.e. inventory Control-Credited
During Internal Uses:
-Internal Uses-Debited
-Stock Account i.e. inventory Control-Credited
During IC Transfer:
-Stock Account i.e. inventory Control-Credited (At location 1, if transfer is done from location 1 to Location 2)
-Transfer clearing account-Credited( The freight charges or labor charges consumed during this transfer)
-Stock Account i.e. inventory Control-Debited(At location 2, if transfer is done from location 1 to Location 2)
For example: if we transfer the goods which cost are Rs.200, if the freight and labor charges are Rs.150, the accounting effect will be shown as follows:
-Stock Account i.e. inventory Control-Credit –Rs 200 (At location 1,if transfer is done from location 1 to Location 2)
-Transfer clearing account-Credit- Rs 150 ( The freight charges or labour charges consumed during this transfer)
-Stock Account i.e. inventory Control-Debit-Rs 200+Rs 150= Rs 350(At location 2, if transfer is done from location 1 to Location 2)
IC Assembly:
-Stock Account i.e. inventory Control-Credit
-Assembly cost-Credit (Packaging, labor charges etc.)
-Stock Account i.e. inventory Control- Debit
For example: Suppose we assemble a computer which contains CPU Monitor and Key board. The accounting effect is shown as follows:
-Stock Account i.e. inventory Control-Credit –Rs. 5000 (monitor cost)
-Stock Account i.e. inventory Control-Credit –Rs. 1500 (CPU Cost)
-Stock Account i.e. inventory Control-Credit –Rs. 300 (Keyboard Cost)
-Assembly cost-Credit –Rs. 1000 (Packaging, labor charges etc.)
-Stock Account i.e. inventory Control- Debit- Rs. 5000+1500+300+1000= Rs 7800 (cost of assembled set)
Thus we have seen the accounting effect on inventory control during the IC Receipts, IC Shipment, IC Internal uses, IC Transfers and IC Assemblies.
Also Read:
1. Allow Non Inventory Item Option in PO
2. Confirmation message in IC Transactions
3. Quarantine Release in Sage 300 ERP
4. BOM Component Usage Enquiry in Sage 300 ERP
5. Adjustment types in I/C Adjustment