11i Closing Activities for OM

It say's that If you use Order Management, ensure that all sales order transaction processes complete and transfer successfully to Inventory.I  was made aware that it creates  the following entry:Dr. Cost of Goods Sold **Cr Subinventory Accounts at Standard Cost ( we are using Standard Costing).** Is the cost  of good sold account coming from Item> Master Item>  Costing Tab?** Cost of Goods Sold Amount coming from where?2 What are transactions that it's transferring to Inventory Module and why is that?