Journal Entries for Gains and Losses

Survey and operation gains and losses are reflected in journal entries that the system generates when you close operations. Journal entries for gains or losses are generated only if the operation is set up with the expense method or the cost component method.

The following example illustrates the journal entries that are generated if a loss occurs and you use the expense method:

If you use the cost component method and incur a loss, the Blend Cost Accounting Journal Entries program writes the journal entries that are shown in this diagram:

When you use the proportional method, the journal entries report shows that gains and losses are not represented as a line item on the report. The following example illustrates loss accounting using the proportional method.