Hello
When doing a new STE manufacture (purpose), when we select a source or target item, the difference account head chosen in the item is usually “stock adj”. But sometimes the difference account is chosen as “Cost of Goods sold” AH.
Why does this happen. Since “Cost of Goods Sold” is a P&L AH and should be touched automatically when a Sale happens, by the system, i am expecting it should not be touched in the STE manuf entries.
Image of stock adj acct selected in item when a new STE with manuf is created
Image of stock adj acct selected in item when a new STE with manuf is created
I thought may be the default WH in an item if different from the WH where the manuf is happening is causing it may be the issue. But its not.
But i have seen, that if i choose the items from a BOM, the AH becomes Cost of Goods sold, instead of Stock Adj.
Pls let us know if we need to fix this, or its working appropriately. Because after submission of the STE, if we see Account ledger, if there is a change in valuation rate of the item, the difference is being booked in cost of goods sold.
Kindly let us know.