Only Post Track Count Inventory Values to General Ledger

How to use Only Post Track Count Values to G/L

The Only post Track Count Inventory Values to G/L option should normally be disabled unless the company's financial team has determined that no count product and labor costs should NOT increase the serialized item value.

This option can be found by going to Inventory > Serialized Items, double-clicking a serial number to open a Serialized Item record, and opening the Costs tab.

Click the New Costs button on the right-hand side of the tab to open an Added Costs dialog. The Only post Track Count Inventory Values to G/L option is located about the table. (See image below.)

Only post Track Count Inventory Values to G/L option is enabled

This option is used to determine if No Count items are excluded from the inventory value in general ledger. For an example, the following costs are combined into a serialized item:

$10.00 - Original serialized item cost (recorded in the inventory asset G/L account)
$18.00 - Battery, classified as Track Count (recorded in the asset G/L account)
$  1.75 - Reflective Letters, classified as Track Count (recorded in the asset G/L account)
$40.00 - Labor cost that is not recorded as inventory (not included in the inventory asset G/L)
$69.75 - Total Value of the inventory serialized item after costs are added to item.
(Since the total value of the item is greater than the total of the original item + track count parts, the inventory asset value increases when the Added Costs batch is processed.)

No Count items and labor do NOT increase the General Ledger value of the serialized item. The Cost of Goods Sold (COGS) for the serialized item will only include the purchase cost and any added Track Count added costs.

The inventory value does not change when an added cost batch is processed if the Only post Track Count Inventory Values to G/L option is enabled. The option will have no effect on the totals if all the added costs are Track Count or other perpetual inventory items.

Only Post Track Count Inventory Values to G/L Option is disabled

All added costs are included in the General Ledger value of the serialized item. The Cost of Goods Sold (COGS) amount includes all costs from all inventory classifications.

Review Separate Cost (G/L) and Cost (Pricing) Values for more details on this option in the manufacturing process.