The Inventory sub-ledger stores the costs and quantities of the items in each of the warehouse locations on your system. The inventory sub-ledger report is created using the average cost and on hand quantity that is maintained in each Inventory Master record. The Inventory Valuation report lists all stocking items which are on hand when the report is produced. The inventory sub ledger balance is the total of the on hand quantities of all of the inventory items in the warehouse locations in your system multiplied by the current average cost of the items.
The inventory sub ledger is affected whenever invoices or credit memos are processed and it is also affected by inventory adjustments, inventory count adjustments, inventory receiving, price protection, average cost adjustments and other activity. A complete list of the transactions that affect the inventory sub-ledger is presented in the Reference Information section of this document.