Inventory Account is not Defined

[Former Member]

Hi All,

We used SBO 2005 A PL 43. On the menu A/P Credit Memo, if we clicked Add, the screen appears error message "Inventory Account is not Defined" <Item Code> <Message number xxx-xxx>. Why is this ? How to solve this matter?

Anybody can help us ?

regards,

Agung

Edited by: Agung Adrianto on May 14, 2008 2:17 AM

[former_member583013 · Accepted solution]

Agung,

This error indicates that you missing the Sales Returns Account in the GL Determination.

If you are using Item Group then go to Admin > Setup > Inventory > Item Groups ...Open the Item group of the item in the credit memo ....go to Accounting Tab and enter the Sales Returns Account

Similarly if using Warehouse

Admin > Setup > Inventory > Warehouses......Warehouses accounting Tab.

[Former Member · Accepted solution]

Dear Suda,

My customer is using SBO 2005 A PL 43. An upgrade from SBO 2004. Item GL is set by item group. Sales return account has also been defined. But when i add, the error message still comes up.

What could be the reason?

Thanks in advance

Regards,

Kevin

[helen_sun]

Hi,

Please check the account settings:

1.the G/L account determination -Inventory

tab.

if the G/L method for the item is by warehouse/Groups/items,please check the warehouse/groups accounting tab ,or the item settings accordingly.

2.the G/L account determination -Purchase tab:e.g.Variance Account etc

Best Regards

Helen Sun

[Former Member]

Hi,

I defined the variance account in GL Account Determination. And i was able to add the A/P credit memo. When i check the JE for double entry, additional entries;

Dr Price Difference Account

Cr Variance Account

I would like to know, what is this variance account is for in this scenario. There is no difference between the standard price and actual price, nor there is difference for freight charges because there is no freight charges invovled in base and target documents.

Please help.

Thanks heaps.

Regards,

Kevin

[former_member583013]

Kevin,

Post your question as NEW thread and also give details of the complete JE along with amounts for me to understand it better

Suda

[Former Member]

Hi Suda,

Thanks for replying, I have actually posted thread on this under the title "Is variance account needed for moving average item valuation?".

I will add the JE double entries for everyone's better comprehension.

Kevin