The following describes the accounting transactions the system creates when cost per warehouse is set to not active and active, and:
- the cost price is manually changed in the Item file (or in the Item/Warehouse file if Cost per warehouse is active) and Goods in transfer exist
- the Goods in transfer are received in the receiving warehouse
When the cost price is changed in any program the system will always check if there are goods in transfer between warehouses. Goods in transfer are items entered on an Internal Replenishment Order (IRO) where the internal sales order has been confirmed in the delivering warehouse (dispatched), but the internal purchase order has not yet been received in the receiving warehouse.
If there are goods in transfer, the system will re-value the goods in transfer in the same way as the revaluation of the normal stock.
Note: The cost type in these examples is either Standard cost or Average purchase cost. If the cost type is FIFO, no revaluation of Goods in transfer is carried out, since the cost on the internal sales order is always used to calculate the stock value in the receiving warehouse.
Cost per warehouse not active
Prerequisites
| Quantity dispatched from delivering warehouse | 110 |
| From warehouse | CEN |
| To warehouse | STO |
| Cost price when goods were issued | 50.00 |
| Quantity in stock, warehouse CEN | 390 |
| New cost price | 55.00 |
Created transactions
Note: The transactions created when the goods were dispatched from the delivering warehouse, corresponds to the transactions described in (Accounting) Deliver goods on an internal sales order.
The following transactions are created when the Standard cost/Average cost is changed in the Item file. The cost price has been changed from 50.00 to 55.00. Note: When the cost change is done, the internal sales order has been dispatched from the delivering warehouse, but the internal purchase order has not yet been received at the receiving warehouse.
| Transaction type | Description | Amount Debit |
Amount Credit |
Calculation/Result/Additional info | |
|---|---|---|---|---|---|
| 901 | Stock value | 1950.00 |
This transaction re-values the stock on hand in warehouse CEN. |
||
| 909/910 | Standard cost change/- Manual average cost change | 1950.00 | Warehouse CEN. This transaction is the cost for the stock value change, i.e. the contra account to 901. This could be accounted on a cost account in DC1 Financials. | ||
| 907 | Goods in transfer | 550.00 |
Warehouse CEN. This transaction re-values the stock for Goods in transfer. |
||
| 909/910 | Standard cost change/- Manual average cost change | 550.00 | Warehouse CEN. This transaction is the cost for the stock value change, i.e. the contra account to 907. This could be accounted on a cost account in DC1 Financials. |
Thus far the stock value in normal stock and the goods in transfer have been re-valued. This means that the stock value of the Goods in transfer now is:
Stock value when goods were Dispatched + Cost change
New value for goods in transfer: 5 500.00 + 550.00 = 6050.00
The following transactions are created when the internal purchase order is received in the receiving warehouse:
| Transaction type | Description | Amount Debit |
Amount Credit |
Calculation/Result/Additional info | |
|---|---|---|---|---|---|
| 901 | Stock value | 6050.00 |
This transaction increases the stock value for warehouse STO using the Standard cost/Average cost in the Item file. Note: When the internal purchase order is created, the purchase price will be retrieved from the Last purchase cost field in the Item file, irrespective of the cost type in the system. You can change the purchase price on the internal purchase order, but this will have no effect whatsoever. When the internal purchase order is received, the system will overwrite the purchase price with the standard cost or average cost from the Item file and will use this in calculating the stock value. |
||
| 907 | Goods in transfer | 6050.00 |
This transaction decreases the Goods in transfer for warehouse CEN. When the internal sales order pick list was confirmed, the amount of 5500.00 was debited on transaction type 907. When the manual cost change was done, this account was debited with the amount 550.00. |
Cost per warehouse active
Prerequisites
| Quantity dispatched from delivering warehouse | 110 |
| From warehouse | CEN |
| To warehouse | STO |
| Cost price when goods were issued | 50.00 |
| Quantity in stock, warehouse CEN | 390 |
| New cost price, warehouse CEN | 55.00 |
| Standard purchase price, warehouse STO | 60.00 |
| Standard cost, warehouse STO | 60.00 |
Created transactions
Note: The transactions created when the goods were issued from the delivering warehouse, corresponds to the transactions described in (Accounting) Deliver goods on an internal sales order.
The following transactions are created when the Standard cost/Average cost is changed in the delivering warehouse in the Item/warehouse file. The cost price (average or standard) has been changed from 50.00 to 55.00. Note: When the cost change is done, the internal sales order has been dispatched from the delivering warehouse, but the internal purchase order has not yet been received at the receiving warehouse.
| Transaction type | Description | Amount Debit |
Amount Credit |
Calculation/Result/Additional info | |
|---|---|---|---|---|---|
| 901 | Stock value | 1950.00 |
This transaction re-values the stock on hand in warehouse CEN. |
||
| 909/910 | Standard cost change/- Manual average cost change | 1950.00 | Warehouse CEN. This transaction is the cost for the stock value change, i.e. the contra account to 901. This could be accounted on a cost account in DC1 Financials. | ||
| 907 | Goods in transfer | 550.00 |
Warehouse CEN. This transaction re-values the stock for Goods in transfer. |
||
| 909/910 | Standard cost change/- Manual average cost change | 550.00 | Warehouse CEN. This transaction is the cost for the stock value change, i.e. the contra account to 907. This could be accounted on a cost account in DC1 Financials. |
Thus far the stock value in normal stock and the goods in transfer have been re-valued. This means that the stock value of the Goods in transfer now is:
Stock value when goods were Dispatched + Cost change
New value for goods in transfer: 5500.00 + 550.00 = 6050.00
The following transactions are created when the internal purchase order is received in the receiving warehouse and the cost type is average purchase price:
| Transaction type | Description | Amount Debit |
Amount Credit |
Calculation/Result/Additional info | |
|---|---|---|---|---|---|
| 901 | Stock value | 6050.00 |
This transaction increases (debits) the stock value for warehouse STO. Note: When the internal purchase order is created, the purchase price will be retrieved from the Last purchase cost field in the Item/Warehouse file, for the receiving warehouse, irrespective of the cost type in the system. You can change the purchase price on the internal purchase order, but this will have no effect whatsoever. When the internal purchase order is received, the system will overwrite the purchase price with the average cost from the Item/Warehouse file for the delivering warehouse and will use this in calculating the stock value. |
||
| 907 | Goods in transfer | 6050.00 |
This transaction decreases the Goods in transfer for warehouse CEN. When the internal sales order pick list was confirmed, the amount of 5500.00 was debited on transaction type 907. When the manual cost change was done, this account was debited with the amount 550.00. |
The following transactions are created when the internal purchase order is received in the receiving warehouse and the cost type is standard cost:
| Transaction type | Description | Amount Debit |
Amount Credit |
Calculation/Result/Additional info | |
|---|---|---|---|---|---|
| 901 | Stock value | 6600.00 |
This transaction increases (debits) the stock value for warehouse STO. Note: When the internal purchase order is created, the purchase price will be retrieved from the Last purchase cost field in the Item/Warehouse file, for the receiving warehouse, irrespective of the cost type in the system. You can change the purchase price on the internal purchase order, but this will have no effect whatsoever. When the internal purchase order is received, the system will overwrite the purchase price with the standard cost from the Item/Warehouse file for the delivering warehouse and will use this in calculating the goods in transfer and purchase price variance values. |
||
| 907 | Goods in transfer | 6050.00 |
This transaction decreases (credits) the Goods in transfer for warehouse CEN. |
||
| 934 | Purchase price variance/stored | 550.00 |
Warehouse STO. This transaction accounts for the purchase price variance as the difference between the actual purchase price and the standard purchase price. |
Related topics
- Overview of accounting transactions for internal order reception
- (Accounting) Receiving goods on an internal purchase order, without landed costs, quality control and cost per warehouse
- Accounting) Receiving goods on an internal purchase order, without landed costs and quality control, Cost per warehouse is active
- (Accounting) Receiving less than the quantity issued from delivering warehouse without landed costs, quality control and cost per warehouse
- (Accounting) Receiving less than the quantity issued on an internal purchase order, with landed costs and without quality control – Cost per warehouse is active
- (Accounting) Receiving goods on an internal purchase order, with quality control, without cost per warehouse
- (Accounting) Receiving fictitious items on an internal purchase order, no cost per warehouse
- Overview of accounting transactions for internal order delivery