Hello,
I am charged with straightening out our inventory. We have several issues going on:
Changing Default COGS account(s) - We recently update our chart of accounts. When this was done, they didn't change the defaults for the internally generated costing transitions do they continue to post to the incorrect accounts. The implementation vendor informed me that in order make the change I need to do the following:
-All prior periods will need to be opened
-run a TB for all months
-Change defaults
-Rerun TB's
-Book adjustments/reclassing as the change will throw off the costing
My question is: Is this necessary or can I just go in and update the default accounts?
Also, my company prefers to book different types of COGS to different accounts i.e. Manufacturing, Warehouse/Shipping and Selling Expenses. Am I correct in thinking the costing engine creates internal transactions by layering on a FIFO basis, the amounts that were input to specific items when their P.O."s were enters, therefore ALWAYS being "Manufacturing COGS"? Warehouse/Shipping could be posted to that COG account when actually paying our warehouse for their services and the same when we post credit card/bank fees to "Selling Expenses"? I guess I would like to confirm that no internal transactions could or should go to any other COGS than "Manufacturing"?
Thank you so much for any help and insight.
Bob
