Credit Offset Transactions

Offset transactions are created only for non-Inventory product codes such as No Count, Service, Non-Inventory Serialized Item, and Rental Code.  These transactions are only created when No Count items are applied to a job or consumed within a manufacturing batch.

Credit Offset Transactons ERP Support Training

The following settings determine if the MFG/Job Cost Offset transactions are created within an expense invoice, job transfer, sales invoice, or manufacturing batch:

1. Open the advanced tab of an product code classified as No Count.

2. The shortcut/product option MUST be selected to create credit offset transactions. 

3. The MFG/Job Cost Offset account must be set to identify the credit offset financial account.  

4. The option setting but be set to subcontract labor if the product is classified as Service.
   

5. Select the shortcut option if the product code identifies expenses that are not actual product or labor.   No credit offset transactions are created if the shortcut option is selected.  Review [Inventory] Product Catalog > Using Product Codes for No Count Items > Product Shortcuts and Credit Offset Switc h for information on the shortcut/product option.  

6. Select the labor or service billing code option if the service product code does not identify subcontract labor and is not added to a manufacturing batch or job transfer.  Review Subcontractor Labor within a Job Transfer or [Inventory] Adding Labor, No Count, and other Costs to a Batch for information on the labor or service billing code option.

7. Set a manufacturing or job cost offset financial account into the MFG/Job Cost Offset entry.  This credit account is often a separate account to allow an accountant to monitor the amount of inventory that is purchased as an expense but then added to a job or finished goods inventory.  

Jobs:  Credit offset transactions are created when no count products are moved to a job using one of the following tools:

• Expense invoice
• Job transfer
• Sales order

Manufacturing batch:  Credit offset transactions are created when no count products or service codes are included in a manufacturing batch.  Review [Inventory] Manufacturing > Creating a Batch > Adding Labor, No Count, and other Costs to a Batch.

Typical Cost-of-goods-sold Transactions

The following transactions are used within COGS processes within job costing and manufacturing modules:

1. Typical track count transactions.  (Credit offset transactions are not created)

   • Job costing:  Product values are moved directly from the inventory asset to a job through a transfer or on an expense invoice.
   • Manufacturing:  Consumed item values are moved from the inventory asset to the finished goods. 

2. No Count products is purchased and then moved to a job or manufacturing batch.  Note that the Shortcut option must be disabled (#1 in graphics show above) to identify No Count products and create credit offset transactions.

   1. No Count items are expensed (Debited) when purchased instead of added to inventory assets.

   2. Credit offset transactions are credited to offset the purchase debits.  These transactions are created in the following processes:

Review Jobs > Job Costs > Product Items and Job Costs for more information on applying products to a job. 

Review [Inventory] Manufacturing > Adding Labor, No Count, and other Costs to a Batch for more information on applying No Count products to a manufacturing batch.