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[Curt Bluhm]

We recently upgraded to GP2016 and started using the drop ship box on the sales transaction entry window for items we are drop shipping to a customer.  We had this option before but never utilized it very extensively. 

Upon our making this change, I’ve noticed a change in how things are flowing thru to my general ledger. 

The short version of my question is this:

On an item card set up (if anyone out there is using the drop ship box), I’m curious what GL account code you are using on the item card for the drop ship items line.  Is it an inventory account, a COGS account or is it some other account?

I have a long explanation for why and what I’m trying to do, but I thought I’d start small and work my way up to the crazy insane things we do and why.

Thanks in advance for any input on this.

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Curt Bluhm
Controller
ADO Products LLC
Plymouth MN
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[Thaddeus Suter]

From a purely financial accounting perspective, the Drop Ship Items Account on an Item card is an Asset Account falling below Physical Inventory and above PPE if used for Drop Ship Inventory and your supplier terms are FOB Shipment w ASN. FOB Destination gets more murky and you would not be the first to make it a COGS account and make corresponding AAP, Unbilled Revenue and Unbilled Receivable accruals.

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Thaddeus Suter
Retus, Inc
Helotes TX
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[Marilyn Long]

We just use a clearing account for both the vendor and customer invoice distribution account for inventory. Sometimes we have to clear a few cents from clearing account but has worked well for 10 years. mll

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Marilyn Long
Controller
Variety Pet Foods
Englewood CO
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