The cost of goods sold (CGS) is posted to G/L after the good sold is posted to G/L. In other words, the Cost Of Goods Sold can not be posted to G/L before the sales invoice is posted to G/L. The Journal Slip generated as a result of this transaction contains the cost of the material.
The journal of the cost of goods sold is done by processing the Material, Mixed Case, Fixed asset and Promotion type lines. The Discount, Surcharge, Service and Material Class type lines in the invoice, and the lines constituting the Mixed Case material are not processed.
The cost of goods sold is posted to G/L with two methods. The first method is to use the Generate CGS Journal Slip option located in the F9 key or right mouse button menu of the Sales Invoices window as detailed below. The second method is to use Post to G/L option located in the Operations menu of the General Ledger section, and is detailed in the General Ledger section.
Generate CGS Journal Slip option is displayed in the menu only the sales invoices that are posted to G/L (displayed with an M) are selected. When Generate CGS Journal Slip is selected, the window where the criteria to be applied to the journal is opened. The filters and functions of the window are:
Filter |
Value |
Posting Control |
Will be done/Will not be done |
Line Combining |
Yes / No |
G/L Slip General Description |
Will be Regenerated/Will be taken from posted slip |
G/L Slip Line Description |
None / Transaction Number / Document Number / Transaction Type / AR/AP Title / Line comment/ Material Description / General Description (1) |
Run Costing Maintenance first |
Yes / No |
G/L Slip Date Assignment |
Posted Slip Date Will be Assigned / Will be Assigned From G/L Slip Date Filter |
G/L Slip Date |
Date Entry |
Posting Control: The Control option is checked if the Journal Slip resulting from the posting transaction will be recorded after the control. In this case, each generated journal slip is displayed and saved after being checked. If Do Not Control is selected in the Posting Control filter, the generated slips are checked directly in the relevant sections and written to the Posting file.
Line Combining: The Line Combining filter is used to define how the lines of the same record with the same G/L Connection Codes will be posted to G/L. If the Line Combining filter is selected as Yes, the lines within the invoice that belong to the same record and that are to be tracked with the same G/L Codes are combined. These lines are displayed as a single line in the Journal Slip resulting from the posting operation.
G/L Slip General Description: The content of the general description of the journey slip resulting from posting is specified in this filter line. If the general description is required to be regenerated, Regenerate option is selected, and the description is generated by the application. If Will be Taken From Posted Slip is selected, the general description of the posted slip is transferred into the Journal Slip.
G/L Slip Line Description: The G/L Slip Line Description filter is used to insert the description information into the lines of the Journal Slip resulting from the posting operation. The information required to be inserted as line description in the G/L slip are checked and selected.
Run Costing Maintenance first: If the costing is required to run before the posting operation, Yes is selected in this filter line.
Once the condition is specified in the filter lines, "OK" button is clicked and the CGS generation is completed.