Costing Purchases for Resale
I. 800000 Natural Account Series
A. In General
This series of natural accounts is generally used to cost goods purchased for resale.
B. In Combination with Project UN35xxxxx
A cost center that includes an 8xxxxx expense natural account and a UN35xxxxx project is special handled. It can be described as a pass-through cost center that is cleared to zero by the end of each fiscal year.
1. Purchases for Resale
Amounts costed to such a cost center, for items that are later sold, are moved to a different cost center, but are still costed to an 8xxxxx expense natural account. These amounts may be described as cost of goods sold.
2. Inventory
Amounts costed to such a cost center, for items being held as inventory for later resale, are moved to a balance sheet cost center at the end of each fiscal year. A journal entry prepared for this purpose is generally a reversing entry.
This topic is subject to change.
Topic originated: 02-Feb-2006
Latest update: 02-Feb-2006
