• Registered: 09/18/2012
  • Posts: 15

Topic: Supplier vs Item GL Accounts

I noticed that you have to define both GL accounts for items and suppliers.  And I was wondering which one of these "wins" when purchasing items.  For example I have a supplier I buy both "expensed" items from as well as "for sale items".  So if I create and item for that supplier they need to go into COGS/inventory accounts, but if use GL accounts for the supplier I need them to go into the expense account.  So if I set the GL accounts in the supplier screen to expense accounts, but then use different GL accounts for items created for that supplier will everything work properly?

I guess I'm just a little confused about the reason for having the GL accounts defined in both the supplier and the item.

Thanks for all the help!

  • From: Canada, BC, Lantzville
  • Registered: 01/07/2013
  • Posts: 135

Re: Supplier vs Item GL Accounts

The GL accounts for suppliers sets the Accounts Payable, Purchase Discounts (eg. for prompt payment of their invoices) and Expense/COGS accounts.  You want to set the Expense/COGS account to "Use Item Inventory/COGS Account" so that when you purchase items from that supplier the expense is coded properly.  Then it will work as it should.

Hope that helps...

Regards,

Chris

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