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.
