Consumable Inventory & General Ledger

Within any accounting system, there is what is referred to as the General Ledger. This is a tracking system designed to accumulate financial (monetary) information, group the financial information by type or category of similar transactions, and provide a means of reporting this information in standardized formats.This topic defines the basic series of transactions and processes that normally occur in a housing agency (HA) . Hopefully, this will help you understand the basic setup of consumable inventory accounts, why actions taken have different affects on the balances, and how the data flows from the Consumable Inventory (CI) program to the General Ledger (GL) program.

Actions

Issue work order: Debits the materials expense account based on charge to or development, and credits the warehouse's inventory account.

Hint: You can issue work orders either between AMPs, or within one AMP.

Warehouse AMP 3 inventory account 333.1260 Credited
Development AMP 1 materials account 111.4420 Debited

Issue item: Debits the materials expense account based on charge to or development, and credits the warehouse's inventory account.

Hint: You can issue items either between AMPs, or within one AMP.

Warehouse AMP 3 inventory account 333.1260 Credited
Development in AMP 3 materials account 333.4420 Debited

Receive item: Credits the warehouse's receive account, and debits the warehouse's inventory account.

The Receive Item action only posts to General Ledger if policy CIRcv is set to False. If you choose to update the Purchase Order program when items are received through Consumable Inventory by setting the policy to True, the action will not post. See "Update PO/Do Not Update PO"
The warehouse's receive account must be different than the warehouse's inventory account for this posting to work.

Adjust item: Debits/Credits the warehouse's adjustment account and credits/debits the warehouse's inventory account. (Accounts may differ between agencies depending on their chart of accounts.)

Hint: You can only adjust items within one AMP.

Warehouse AMP 3 inventory account 333.1260 Debited
Warehouse AMP 3 adjustment account 333.4420 Credited
If it is a negative adjustment, the entry is a credit to inventory 1260 and a debit to adjusting account (expense) 4420.

Return item: Credits the development's materials expense account and debits the warehouse's inventory account.

AMP 3 inventory account 333.1260 Debited
AMP 3 materials expense account 333.4420 Credited

Dispose item: Debits the warehouse's dispose account, and credits the warehouse's inventory account.

Hint: You can only dispose of an item within one AMP/warehouse.

Items disposed from AMP 1 warehouse
AMP 1 inventory account 111.1260 Credited
AMP 1 dispose account 111.4420 Debited