Finale Inventory General Ledger
Finale Inventory maintains a General Ledger with a Chart of Accounts to track all financial transactions resulting from your inventory management activities. Each transaction you create and commit in Finale generates entries in the appropriate accounts.
To view your Chart of Accounts: go to Application Settings > Accounting tab.
Note: Finale includes customizations and overrides for QuickBooks Online integration. For example, you can have product specific accounts or sales source overrides. This is just a general guide.
Your account comes pre-configured with default account names. You may keep these defaults or create additional accounts as needed.
Inventory Transaction Flow
Below is a summary of common transaction types and the associated ledger accounts:
Purchase Transactions
Purchase Shipment Delivered
Debit |
Credit |
Notes |
|---|---|---|
Inventory (101) |
Purchases Clearing (451) |
Standard stock addition |
Inventory (101) |
Purchases Variance (470) |
Only if purchase sets the average cost for items in stock |
Purchase Bill Posted
Debit |
Credit |
Notes |
|---|---|---|
Purchases Clearing (451) |
Accounts Payable (201) |
Product items |
Purchases Discounts (404) |
Accounts Payable (201) |
Discounts/fees |
Purchases Taxes (502) |
Accounts Payable (201) |
Taxes |
Purchase Bill Payment Posted
Debit |
Credit |
Notes |
|---|---|---|
Accounts Payable (201) |
Cash on Hand (120) |
Do not post payments in Finale; post in QuickBooks only. Finale will sync payments from QuickBooks. |
Supplier Credit Memo Posted (Coming Soon)
Sales Transactions
Sale Shipment Shipped
Debit |
Credit |
Notes |
|---|---|---|
COGS (401) |
Inventory (101) |
Standard shipment |
Sales Clearing (251) |
Sales (301) |
Revenue recognition |
Sales Invoice Posted
Debit |
Credit |
Notes |
|---|---|---|
Accounts Receivable (110) |
Sales Clearing (251) |
Product items |
Accounts Receivable (110) |
Sales Discounts (312) |
Discounts/fees |
Accounts Receivable (110) |
Sales Taxes (230) |
Taxes |
Allocated adjustments are included in the product line items. |
Invoice Payment Posted
Debit |
Credit |
Notes |
|---|---|---|
Undeposited Funds (313) |
Accounts Receivable (110) |
Do not post payments in Finale; post in QuickBooks only. Bi-directional syncing is coming soon. |
Sales Return Shipment Received
Debit |
Credit |
Notes |
|---|---|---|
Inventory (101) |
COGS (401) |
Return |
Sales (301) |
Sales Clearing (251) |
Revenue adjustment |
Stock Adjustments & Builds
Stock Change / Stock Take Committed
Debit |
Credit |
Notes |
|---|---|---|
Inventory Variance (170) |
Inventory (101) |
Reason codes can map to specific expense accounts |
Build Completed
Debit |
Credit |
Notes |
|---|---|---|
Inventory (101) |
Inventory (101) |
Only if value moves to a different account |
Average Cost Change Posted
Debit |
Credit |
Notes |
|---|---|---|
Inventory Variance (170) |
Inventory (101) |
Reflects cost adjustment |
Journal Entry Posted
Debit |
Credit |
Notes |
|---|---|---|
User-specified |
User-specified |
No default accounts; defined by user |