Inventory Accruals
Inventory and Purchasing provide you with visibility
and control of your accrued liabilities for inventory items. Purchasing
automatically records the accrued liability for your inventory items at the
time of receipt as perpetual accruals. This transaction is automatically
recorded in your general ledger at the time of receipt (unless you specified
otherwise when setting up periodic costing). The inventory expense is recorded
at delivery if you use Standard Delivery and at receipt if you use Direct
Delivery. You have options to determine whether Purchasing and Inventory
reverse encumbrances. The option used is dependent on how you compare
encumbrance to budget balances in inventory for your organization.
