Frequently Asked Questions
When updating inventory items using Goods Issuance or Inventory Adjustment transactions, a purpose is needed for the system to identify the accounting entries for the adjustment. Each purpose has an assigned Chart of Account which determines whether the adjustment is charged as additional inventory, cost of goods, or a direct expense.
Purpose is also used in changing the Average Cost of an inventory item.
Setting up the Purpose takes place at the Bookkeeping module:
- Go to Controlling > Masterlist > Department Profile
- Select a Department
- Input the Purpose and the corresponding COA
- Click "Save"