Inventory accounting using Method A can be considered the standard accounting method.

Method A means, in short, that purchased inventory is first posted to the relevant balance sheet account and only reaches expenses through issue slips when it is consumed. Detailed guides describing Method A are freely available on the internet.

The opposite is Method B, in which inventory purchases are posted directly to consumption, to accounts 501 and 504. Costs therefore reach the accounting records only through received invoices.

Only one accounting method can be used for all warehouses, that is, either only A or only B.

A guide is also available for inventory accounting using Method B.

In the settings of the Goods module, you will find the Post warehouse to accounting option.

To open the settings, click Settings at the bottom left. In the Modules section, select Goods. As with other company settings changes, you can also create new settings valid from a specific date here by clicking the Save with validity as of date button.

If the option is selected, inventory is accounted for using Method A (the default state). If it is cleared, inventory is accounted for using Method B.

Once this option is selected, the warehouse is posted to accounting. This means that accounting warehouse document types are used.

Accounting warehouse document types, that is, the warehouse document types used for inventory accounting under Method A, can be recognized by the Is accounting option on the Accounting tab (under More options).

Documents issued with a document type marked as accounting enter the accounting records. They therefore affect both the accounting and the warehouse stock level.

When accounting using Method A is activated, it is not possible to work with non-accounting warehouse document types, and vice versa.

For such document types, it is possible (or rather necessary) to set a posting rule, separately for receipts (Posting rule - receipt [CR]) and for issues (Posting rule - issue [DR]);

as well as the posting itself on the Accounting tab of the receipt or issue slip (the warehouse account and the offsetting account).

If the information above is filled in, the given value will be reflected on the relevant accounts. You can view it, among other places, in the general ledger.

Warehouse documents can be generated automatically directly from invoices. Automatic generation from invoices depends on the settings of the issued and received invoice types. By default, automatic generation of warehouse documents is active (the Generate warehouse option on the Warehouse tab).

You can find more information about document type settings in our guide.

In the invoice type, you can easily define the warehouse document type that will be generated from it automatically (the Receipt type and Issue slip type fields). If you use Method A, set an accounting warehouse document type here.

In connection with the settings above, you may encounter the error: "Neshoduje se parametr Účetní u typu dokladu s nastavením skladu.".

This means that the warehouse document type does not match the company settings. Either you are posting the warehouse to accounting (Method A) and the warehouse document type is set as non-accounting, or you are not posting the warehouse to accounting (Method B) and the warehouse document type is set as accounting.

The solution is to make the settings consistent: