Overview of Cost Accounting Distributions

For every inventory and manufacturing transaction, there is an accounting entry in cost accounting. This appendix explains the transaction events and their corresponding accounting entries in detail.

Note: You will notice either a single asterisk (*) or double asterisks (**) for some entries in the tables.

• Single asterisk (*): You can track inventory in an asset subinventory location or in an expense subinventory location. An asterisk (*) in the table indicates that the accounting line type differs depending on whether you track the inventory as an asset or expense. When you track inventory as an asset, you must define an inventory valuation account in your accounting rules. Similarly, when you track inventory as an expense, you must define an expense account in your accounting rules.

• Two asterisks (**): Indicates accounting distributions that are applicable only to standard cost.