What are the General ledger transaction flow for Credits and Debits to the Chart of Accounts?

Finale Inventory has a General Ledger that contains a chart of accounts for tracking the financial transactions of the inventory management transactions you create and commit in Finale Inventory.

Below is an explanation of the Flow and explanations for what creates them.

To see your Finale Inventory account's Chart of Accounts, go to Application settings, then click on the Accounting tab.

IMPORTANT - Finale has many special customizations and overrides for financial account processing with QuickBooks Online. please refer to the How to configure the QuickBooks Online Integration document for more details.

Your account is created with these default account names. You may keep these, update them, or create new or additional ones if you need them.

Each Inventory transaction you do in Finale Inventory will create a general ledger entry into one of the accounts above.

Below is an explanation of the flow.

Transaction Type: Purchase shipment delivered

Debit/Credit	Account Type	Default Account	Notes
Debit	Inventory	101 // Inventory account
Credit	Other current liability	451 // Purchases clearing account
Debit	Inventory	101 // Inventory account	Only if purchase sets the average cost for items in stock
Credit	Other current liability	470 // Purchases variance account	Only if purchase sets the average cost for items in stock

Transaction Type: Purchase bill posted

Debit/Credit	Account Type	Default Account	Notes
Debit	Other current liability	451 // Purchases clearing account	If product item
Credit	Accounts payable	201 // AP account	If product item
Debit	Other expense	404 // Purchases discounts account	If discount or fee
Credit	Accounts payable	201 // AP account	If discount or fee
Debit	Other expense	502 // Purchases taxes account	If tax
Credit	Accounts payable	201 // AP account	If tax

Transaction Type: Purchase bill payment posted *

Debit/Credit	Account Type	Default Account	Notes
Debit	Accounts payable	201 // AP account
Credit	Other current assets	120 // Cash on hand

* IMPORTANT - Currently, if you are integrating with QuickBooks Online, do not post payments in Finale Inventory. You should only record/post Bill payments in your QuickBooks once Finale syncs the Bill to your QuickBooks. Finale Inventory will syncl Bill payments from your QuickBooks which will add/record the payment you make in your QuickBooks against the Bill in Finale Inventory for you!

Transaction Type: Supplier Credit Memo posted *

Debit/Credit	Account Type	Default Account	Notes
Debit
Credit	Other current assets

* IMPORTANT - COMMING SOON!

Transaction Type: Sale shipment shipped

Debit/Credit	Account Type	Default Account	Notes
Debit	Cost of goods sold	401 // COGS account
Credit	Inventory	101 // Inventory account
Debit	Other current asset	251 // Sales clearing account
Credit	Sales	301 // Income account

Transaction Type: Sales invoice posted

Debit/Credit	Account Type	Default Account	Notes
Debit	Accounts receivable	110 // AR account	If product item
Credit	Other current asset	251 // Sales clearing account	If product item
Debit	Accounts receivable	110 // AR account	If discount or fee
Credit	Sales	312 // Sales discounts account	If discount or fee
Debit	Accounts receivable	110 // AR account	If tax
Credit	Other current liability	230 // Sales taxes account	If tax

*Note: Allocated adjustments are reported as part of the product line item

Transaction Type: Invoice payment posted *

Debit/Credit	Account Type	Default Account	Notes
Debit	Other current assets	313 // Undeposited funds
Credit	Accounts receivable	110 // AR account

* IMPORTANT - Currently, if you are integrating with QuickBooks Online, do not post payments in Finale Inventory. You should only record/post invoice payments in your QuickBooks once Finale syncs the Invoice to your QuickBooks. In the near future, Finale Inventory will add Bi-Directional Invoice payment syncing with your QuickBooks which will sync back the payment you make in your QuickBooks and add it to the Invoice in Finale Inventory for you!

Transaction Type: Sales return shipment received

Debit/Credit	Account Type	Default Account	Notes
Debit	Inventory	101 // Inventory account
Credit	Cost of goods sold	401 // COGS account
Debit	Sales	301 // Income account
Credit	Other current asset	251 // Sales clearing account

Transaction Type: Stock change/stock take committed

Debit/Credit	Account Type	Default Account	Notes
Debit	Expense	170 // Inventory variance account	Finale has reason codes for stock changes and takes that can be associated with specific Inventory Expense accounts for each reason
Credit	Inventory	101 // Inventory account

Transaction Type: Build completed

Debit/Credit	Account Type	Default Account	Notes
Debit	Inventory	101 // Inventory account	Only if the build moves value to another account (debit/credit must be different accounts)
Credit	Inventory	101 // Inventory account	Only if the build moves value to another account (debit/credit must be different accounts)

Transaction Type: Average cost change posted

Debit/Credit	Account Type	Default Account	Notes
Debit	Expense	170 // Inventory variance account
Credit	Inventory	101 // Inventory account

Transaction Type: Journal entry posted

Debit/Credit	Account Type	Default Account	Notes
Debit			User-specified (no default)
Credit			User-specified (no default)

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Transaction Type: Sales return shipment received

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