Reference: Inventory Transaction Accounting

Inventory Accounting Treatment

Workday generates an inventory accounting journal entry after you complete an inventory transaction business process.

Transaction	Generates Item Accounting as an Inventory Asset	Generates Item Accounting as an Expense
Receipt Accrual Process (Procurement)	Never generates accounting for items in Stock spend categories.	Never generates accounting for items in Stock spend categories.
Ad Hoc Put-Away	Yes	Yes
Receipt Put-Away	Yes	Yes
Create Stock Request	No	No
Stock Request Put-Away	Yes	Yes
Stock Request Issue	Yes	No
Quick Issue	Yes	No
Inventory Move	Only generates accounting when resulting worktags are different.	No
Pick Inventory	No	No
Shipment Issue	Yes	No
Shipment Transfer	Yes	Yes
Inventory Adjustment	Yes	No
Inventory Cost Adjustment	Yes	Yes
Supplier Invoice (Payable)	Yes	Yes
Supplier Invoice Purchase Price Variance Adjustment	Yes	Yes
Supplier Invoice Variance Write-off	Yes	Yes
Return	Yes	Yes

Inventory Asset Accounting Treatment

Workday generates these debit and credit journal entries for inventory assets:

Transaction	Account Posting Rule for Debit Entry	Account Posting Rule for Credit Entry
Receipt Accrual Process (Procurement)	Never generates accounting for items in Stock spend categories.	Never generates accounting for items in Stock spend categories.
Ad Hoc Put-Away	Spend	Inventory Adjustment
Receipt Put-Away	Spend	Receipt Accrual
Create Stock Request	Doesn't generate accounting.	Doesn't generate accounting.
Stock Request Put-Away	Spend	Spend
Stock Request Issue	Spend (always uses the Expense accounting treatment).	Spend
Quick Issue	Spend (always uses the Expense accounting treatment).	Spend
Inventory Move	Spend (only when the resulting Worktags are different).	Spend (only when the resulting Worktags are different).
Pick Inventory	Doesn't generate accounting.	Doesn't generate accounting.
Shipment Issue	Spend (always uses the Expense accounting treatment).	Spend
Shipment Transfer	Spend	Spend
Inventory Adjustment	For increases in inventory: Spend For decreases in inventory: Inventory Adjustment	For increases in inventory: Inventory Adjustment For decreases in inventory: Spend
Inventory Cost Adjustment	For increases in inventory cost: Spend For decreases in inventory cost: Inventory Cost Adjustment	For increases in inventory cost: Inventory Cost Adjustment For decreases in inventory cost: Spend
Supplier Invoice (Payable)	Receipt Accrual	Payable
Supplier Invoice Adjustment	For increases in the invoice: Inventory Adjustment For decreases in the invoice: Accounts Payable	For increases in the invoice: Accounts Payable For decreases in the invoice: Inventory Adjustment
Supplier Invoice Purchase Price Variance Adjustment	For increases in variance: Spend For decreases in variance: Receipt Accrual	For increases in variance: Receipt Accrual For decreases in variance: Spend
Supplier Invoice Variance Write:off	For increases in variance: Inventory Cost Adjustment For decreases in variance: Receipt Accrual	For increases in variance: Receipt Accrual For decreases in variance: Inventory Cost Adjustment
Receipt Adjustment with Put-Away Adjustment	For increases in the receipt: Spend For decreases in the receipt: Receipt Accrual	For increases in the receipt: Receipt Accrual For decreases in the receipt: Spend
Return to Supplier from Inventory	Inventory Adjustment	Spend

Inventory Expense Accounting Treatment

Workday generates these debit and credit journal entries for inventory expenses:

Transaction	Account Posting Rule for Debit Entry	Account Posting Rule for Credit Entry
Receipt Accrual Process (Procurement)	Never generates accounting for items in Stock spend categories.	Never generates accounting for items in Stock spend categories.
Ad Hoc Put-Away	Spend	Inventory Adjustment
Receipt Put-Away	Spend	Receipt Accrual
Create Stock Request	Doesn't generate accounting.	Doesn't generate accounting.
Stock Request Put-Away	Spend Inventory Markup (when applicable)	Spend Inventory Markup (when applicable)
Stock Request Issue	Doesn't generate accounting.	Doesn't generate accounting.
Quick Issue	Doesn't generate accounting.	Doesn't generate accounting.
Inventory Move	Doesn't generate accounting.	Doesn't generate accounting.
Pick Inventory	Doesn't generate accounting.	Doesn't generate accounting.
Shipment Issue	Doesn't generate accounting.	Doesn't generate accounting.
Shipment Transfer	Spend Inventory Markup	Spend Inventory Markup (when applicable)
Inventory Adjustment	Doesn't generate accounting.	Doesn't generate accounting.
Inventory Cost Adjustment	For increases in inventory cost: Spend For decreases in inventory cost: Inventory Cost Adjustment	For increases in inventory cost: Inventory Cost Adjustment For decreases in inventory cost: Spend
Supplier Invoice (Payable)	Receipt Accrual	Payable
Supplier Invoice Adjustment	For increases in the invoice: Inventory Adjustment For decreases in the invoice: Accounts Payable	For increases in the invoice: Accounts Payable For decreases in the invoice: Inventory Adjustment
Supplier Invoice Purchase Price Variance Adjustment	For increases in variance: Spend For decreases in variance: Receipt Accrual	For increases in variance: Receipt Accrual For decreases in variance: Spend
Supplier Invoice Variance Write-off	For increases in variance: Inventory Cost Adjustment For decreases in variance: Receipt Accrual	For increases in variance: Receipt Accrual For decreases in variance: Inventory Cost Adjustment
Receipt Adjustment with Put-Away Adjustment	For increases in the receipt: Spend For decreases in the receipt: Receipt Accrual	For increases in the receipt: Receipt Accrual For decreases in the receipt: Spend
Return to Supplier from Inventory	Inventory Adjustment	Spend

Consigned Inventory Accounting Treatment

Workday creates accounting entries for consignment transactions that result in a payment obligation. For these consignment transactions, Workday creates a:

Credit accrued liability.

Debit spend entry (debit inventory adjustment for adjustment transactions).

Transaction	Account Posting Rule for Debit Entry	Account Posting Rule for Credit Entry
Receipt Put-Away	Doesn't generate accounting.	Doesn't generate accounting.
Ad-Hoc Put-Away	Doesn't generate accounting.	Doesn't generate accounting.
Quick Issue	Spend	Receipt Accrual
Shipment Issue	Spend	Receipt Accrual
Decrease adjustment when the adjustment reason isn’t Exclude from Consigned Payment .	Inventory Adjustment	Receipt Accrual
Increase Inventory Adjustment	Doesn't generate accounting.	Doesn't generate accounting.
Move good from a consignment location to a consignment location	Doesn't generate accounting.	Doesn't generate accounting.
Move goods from a consignment location to an owned location.	Spend	Receipt Accrual
Return to Inventory (Usage Paid)	Spend (Asset)	Spend
Return to Inventory (Usage Unpaid)	Receipt Accrual	Spend
Transfer shipments.	Doesn't generate accounting.	Doesn't generate accounting.

Workday Community 32 What's New Post: Consigned Inventory Management

Workday 33 What's New Post: Consigned Inventory in Par Locations

Workday 33 What's New Post: Consigned Inventory for Suppliers and Pricing