Creating Inventory Accounting Lines for Consumed Consignment Inventory

When consigned inventory is consumed and costed, the Accounting Entry Line Creation job generates the appropriate distribution accounting for each transaction group that is processed.

Transfer From a Non-Owned to an Owned Location

Inventory transfer transactions (060), where a consigned item is moved from a non-owned to an owned location, create this entry:

DR Inventory

CR Accrued Liability

If location accounting is not used, the bin-to-bin transaction pulls the debit side of the accounting entry from the Accounting Rules page. If location accounting is used, the bin-to-bin transaction pulls the debit side of the accounting entry from the Storage Area Accounting page for the destination storage location.

Shipping/Issue or Express Issue

Issue transactions (030-034) create this entry:

DR COGS

CR Accrued Liability

The COGS account is determined using existing logic.

Issue to PeopleSoft Maintenance Management

Issue consigned inventory stock to a work order in PeopleSoft Maintenance Management using transaction group 231 (WM Usage).

DR Work Order

CR Accrued Liability

When items are issued from PeopleSoft Inventory to a work order, PeopleSoft Maintenance Management can provide overriding ChartField combinations on the work order. These account distribution overrides are used with the existing accounting logic in PeopleSoft Cost Management to create the necessary accounting entries. If overrides are not provided, the work order expense account is determined using existing logic.

Adjustments and Physical Accounting Adjustments

Inventory adjustment transactions (050, 051, 053) and inventory counting adjustment transactions (040, 041) that adjust the stock level down will create this entry:

DR Adjustment Account

CR Accrued Liability

The adjustment account is determined using existing logic.

Stock Consumed as a Component in Manufacturing

Component consumption transactions (230 and 220) create this entry:

DR WIP

CR Accrued Liability

The WIP account is determined using existing logic.