Create Item Account Definition – A summary of the activity

This activity allows you to create an item account definition. You can define an item account based on an item account group and a finance book or an item and a finance book. The item accounts could be assigned for composite purposes, as a result of which provisions to define the following accounts are available: Stock account, Work in Progress (WIP) account, Sub contractor WIP account, Material Lost in Transit account, Purchase Price Variance account and Stock Adjustment account. You can also view the consolidated details of the item account definition.

• Stock account – defined to value the stocks present in a warehouse, based on the item account group or a specific item.

• Work in Progress account – defined to value the resources present midway between the raw material and the finished goods.

• Sub contractor WIP account – defined to value the stock that has been sent to a sub contractor.

• Material Lost in Transit account – defined to value the materials lost during transportation or shipment.

• Purchase Price Variance account – defined to value the variation between the amount quoted in the purchase order and the actual amount paid.

• Stock Adjustment account – defined to value the variations encountered during stock adjustments.

This activity also allows you to define a purchase TCD account. You can define a TCD account based on setting certain parameters. The details of the TCD account code can also be viewed.

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