When invoices are posted (either online or using the older batch process) the system posts the cost component of each invoice line as follows:
The current cost of the item (the inventory average cost) is taken out of the appropriate general ledger inventory control account to record the reduction to inventory.
The cost of the item is charged to the appropriate general ledger Cost of Sales account.
The rebate amount (which is the difference between the cost and the current cost) for each invoice line, is charged to the “Rebates Receivable” account in the general ledger.
Note: All three of the above accounts are defined by the setting of the autopost numbers in the product line record associated with the inventory item be processed.
Please Note: In the current version of the system, the sales posting program posts the rebates recorded in each invoice line (or the difference between the cost and current cost of the invoice lines) to the rebates receivable account in the General Ledger. The system does not currently create records in the Rebate file during sales posting and the optional Rebate Loader program is used (if necessary) to create Rebate records for your invoices.
Later releases of the system will include the Rebate Management programs and the Rebates data file in the standard system, and the sales posting program will be adjusted to create the rebate records for the invoices online.