Sales Departments are used to define the sales, cost of sales and inventory GL accounts which will be assigned to each inventory item. If a sales department is not added to an inventory item, then accounts are assigned from the Special Accounts in Company Settings.
You can open the list of sales departments from the top Inventory menu.
Code – An alphanumeric code up to 10 characters.
Description – The name of the sales department. This appears within Inventory items when selected.
Inventory Account – The Ledger account used for updating inventory valuation when items are purchased, sold or adjusted. User Security allows editing this account on sales order details, which is generally not recommended.
Cost of Sales Account – The Ledger account used for updating cost of sales when items are sold. User Security allows editing this account on sales order details, which is generally not recommended.
Revenue Account – The Ledger account used for updating revenue when items are sold. User Security allows editing this account on sales order details, which is generally not recommended.