Understanding Journal Entry Creation

You create journal entries for unaccounted shop floor activity to report transactions for material issues, completions, and labor and machine hours for a work order or rate schedule.

For standard costing, you can use processing options to specify whether the general ledger class code for inventory issue transactions is retrieved from the issue location or from the item branch record for the item. You can do so if the item has a valid record in the Item Location table (F41021). Defining accounts for inventory cost enables you to more specifically track customer inventory, for example, as opposed to single-owner inventory.

If you use project accounting, you complete top-level items to project inventory accounts. However, when you need inventory for sales orders, the system searches general inventory accounts, not project accounts. To enable the JD Edwards EnterpriseOne Sales Order Management system to access the items that a project produces, you can set a processing option to create duplicate journal entries that credit a contra account and debit the general inventory account.

The program produces error messages if it finds any general ledger errors while formatting the journal entries. To read these error messages, review the workflow messages.