When creating a bill, the general ledger entry associated with the bill generally posts as a debit to Inventory/COGS (if direct expensing) and a credit to Accounts Payable. When using branches, Accounts Payable posts to the branch associated with the vendor on the bill; and Inventory/COGS posts to the branch (or branches) associated with the items and parts on the bill. There is a default from the branch for the bill, but users can change this to use a different branch for each record.
For Example: A user posts a bill for a vendor associated with the Ohio branch that includes parts for two different branches: Ohio Branch and Michigan Branch. The bill has the following records associated with it:
- Part 1 - $50 (Ohio Branch)
- Part 2 - $50 (Michigan Branch)
These will post to the GL as normal with branches associated with the individual entries and AP being associated with the branch the vendor is on (Ohio).
| Debit | Credit | Branch | |
|---|---|---|---|
| COGS | $50 | Ohio | |
| COGS | $50 | Michigan | |
| Accounts Payable | $100 | Ohio | |
| Inter-Branch Due from Michigan | $50 | Ohio | |
| Inter-Branch Due to Ohio | $50 | Michigan |