Expenses Clearing Account

[Former Member]

Hi all!

In G/L determination set up. Can you tell me about Expenses Clearing Account under Inventory tab will appear in what transaction. What does it mean.?

Thanks!

[Former Member · Accepted solution]

Expense Clearing Account u2013Liability Acct. Account used when posting Goods Receipt PO with Freight that will influence cost price of item. Works like the allocation cost acct. Should be balanced when basing as AP Invoice on the GRPO.

[former_member583013]

This account is similar to the Allocation Account to which a Journal Entry will be posted when you process a Goods Receipt PO.

When you have line level Additional Expense (Freight 1, Freight 2, et) and if you have checked Freight 1 Last Purchase Price (to update the Items cost) a journal entry to the Expenses Clearing Account will be posted for the amount of Freight