| G/L Account | Debited when... | Credited when... |
| Inventory | Items are received in inventory. | Items are sold or issued from inventory. |
| Cost of Goods Sold | Items are sold or issued from inventory (including transactions from IM Transaction Entry) |
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| Sales Income |
| Invoices are issued (offset by debit to A/R) |
| Sales Returns | Goods are returned from a customer (S/O credit memo offset by credit to A/R). |
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| Inventory Adjustment | An adjustment that increases inventory is created in Transaction Entry or during the physical count process. A standard valuation item with either 0.00 cost in the item maintenance panel or if you increase the standard cost in a Transaction Entry Receipt will Debit this account. | An decrease in inventory Debits this account. |
Purchases Clearing | An invoice for the items received is processed and A/P is credited. | This account is credited when items are received into inventory. |
| PO Variance Adjustment | The difference between the invoiced cost and the actual cost received decreases inventory value. | The difference between the invoiced cost and the actual cost received increases inventory value. |
MFG Variance Adjustment | The manufactured cost is less than the standard cost from Bill of Materials or Work Order and decreases inventory value. | The manufactured cost of an item from Bill of Materials or Work Order is greater than the standard cost value and increases inventory value. |
RMA Scrap | An inventory item is returned for scrap |
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Repairs in Process | Items are returned for repair, and 'Track Repair Items through Inventory' is selected in RMA Options. | Repaired items are reshipped and reinvoiced to the customer, and 'Track Repair Items through Inventory' is selected in RMA Options |
| Repairs Clearing | Repaired items are reshipped and reinvoiced to the customer, and 'Track Repair Items through Inventory' is selected in RMA Options. | Items are returned for repair, and 'Track Repair Items through Inventory' is selected in RMA Options. |