Item Category Table

The item category table displays 11 accounts. Each account can be associated to a cost centre (except the Inventory account):

- [A1] the vendors’ invoices are entered in the Purchase Account,

- [A2] the (tax  free) invoice accounts are entered in the Sales Account,

- [A3] all the inventory transactions are recorded (and valued with the standard costs) in the Inventory Account. This account is a Normal account (which is not allocated to cost centers).

The following accounts are of the special type

- [A4] the value of the sold items are entered in the CGS Account,

- [A5] the standard value of the receipts are entered in the Goods Receipts Account (when the materials are received),

- [A6] the difference between the duty free value and the standard costs of the receipts are entered in the Purchasing Variance Account,

- [A7] the standard cost value of the inventory adjustments are entered in the Inventory Adjustments Account,

- [A8] the value of the work-in-process is entered in the WIP account. This value is estimated by the standard cost value of the components and of the production times,

- [A9] the production costs (machines, labor) estimated as the real production times multiplied by the resources standard costs are entered in the Production Cost Account,

- [A10] the difference between the real production cost and the item standard cost is entered is entered in the Variances/Std Cost Account, when the produced order is entered into the inventory,

- [A11] the value of the production scraps (valued via the work-in-process value) is entered in the Scrap Cost Account.