ManualDoc:T210

As shown in the screen above, you can configure for each product and general ledger some accounts to be used in the below listed transactions:

• Product Assets: this field stores the default account to be used to record inventory transactions such as:
  • Inventory Counts
  • Inventory Movements
  • and Goods Receipt

This account is typically an asset account

• Product Expense: this field stores the default account to be used to record product's purchases:
  • Normally, this account can be configured as an "Expense" account type in case of not managing "Perpetual Inventory".
    In that case the expense is accounted at the time the goods are purchased at the purchase price.
    Same way, the revenue is accounted at the time the goods are sold at the sales price.
    Not managing "Perpetual Inventory" implies the need of manually adjusting the inventory value at the end of the year.
    That inventory adjustment implies to calculate the difference between the "Final Inventory Value" and the "Initial Inventory Value".
  • However, this account can also be configured as an "Asset" account in case of "Perpetual Inventory" management.
    In that case the expense needs to be accounted when the product is sold to the customer as "Cost of the Goods Sold" at the product cost.
    In Openbravo, the revenue is accounted at the time the goods are sold at the sales price and the cost of the goods sold is accounted at the time of shipping the goods at the product cost.
    Managing "Perpetual Inventory" does not imply the need of adjusting the inventory value at the end of the year.
• Product Deferred Expense: this field stores the default account to be used to record deferred expenses.
  This account is typically an asset account.
• Product Revenue: this field stores the default account to be used to record product sales revenues.
  This account is typically a revenue account.
• Product Deferred Revenue: this field stores the default account to be used to record deferred revenues.
  This account is typically a liability account.
• Product COGS: this field stores the default account to be used to record the cost of the goods sold.
  This account is typically an expense account.
• Product Revenue Return: this field stores the default account to be used to record sales returns .
  This account is typically a revenue account.
• Product COGS Return: this field stores the default account to be used to record .
  This account is typically an expense account.
• Invoice Price Variance: this field stores the default account to be used to record price differences between posted Goods Receipts and booked Purchase Invoices.
  This account is typically an asset account

At first, these accounts are inherited from the Defaults accounts of the organization's general ledger configuration for which the product is being created. The end-user can always change them.

Besides, it is important to remark that it is possible to configure the creation of new correlative accounts for the products as described in the General Ledgers tab of the Organization window.