Default GL accounts for the item are predefined; however, you can select another accounts for particular items and for particular groups.
The following fields are required: Item Type, GL Account, Sales Revenue, Cost of Goods Sold, Output VAT, and Input VAT.
The "GL Accounts for Items (create)" form
If you are setting up the default accounts for the particular item, the Item field is not empty. If you are setting up the default accounts for a group of items, the field is empty, because the selected accounts will be applied to multiple items.
The Item Type field is populated automatically if the item is selected in the Item field. If no item is selected in the Item field, you can select the type of items (Inventory, Service, or Operation) for which the default accounts will be used, that is the settings will be applicable to each item of the type except those items for which specific default accounts are selected.
The Entity field is an optional field. If you need to use separate accounts for items in each entity, then select the particular entity in this field.
The GL Accounts section
In the GL Account field, you can select the default account to be used for transactions with the item or items of the selected type. If Inventory is selected as the item type, the GL Account field should hold the account intended for recording the inventory costs in document registering item purchases and transfers. If Service or Operation is selected as the item type, the account is intended for expenses and unfinished production costs related to the item.
In the Goods on Consignment field, you can select the account for recording the items transferred to consignment.
The Sales Revenue field is intended for recording the item sales profits. It is used as the default account for recording the item sales.
You can use the Trade Discounts field for selecting the default account intended for discounts offered to customers.
If Inventory is selected as the item type, the Cost of Goods Sold field becomes required. This account is used for recording the costs of items sold during the financial period.
The Output VAT field is intended for account to which the value-added tax received on sales of the item or items to customers will be recorded.
The Input VAT field is used for specifying the account to which the value-added tax payable to suppliers on purchases of the item or items will be recorded.
The toolbar buttons
Click Save and Close to save the item default accounts or changes to such accounts. Click Close to close the form without saving.