UseCostofGoodsLedger

Usually this setting is set to ticked/true which means only the ledger attached to the inventory item for Cost of Sales is used to post the cost of inventory on processing of a sales order.  When a creditor invoice is activated for purchases or shipments, the inventory and trade creditors ledgers are used.

When the UseCostOfGoodsLedger setting is unticked, Jiwa posts an additional two lines, per inventory item, when Invoices from shipments and purchases invoices are activated.  These two additional lines per inventory item post a credit to the Cost of Sales account attached to the inventory record and a debit to the Creditor Purchases account attached to the creditor record.  

For example, the account attached to the Cost of Goods Sold would need to be linked to a new balance sheet Liability account e.g.  7270-000-00 Stock Not Sold.  Here's what would happen if this setting was ticked: (shown here are the additional lines, not all the lines of the journal)

• July - receive and raise a shipment invoice for 50,000

• August - some of these goods are sold for a cost of 25,000

July

• Debit Creditor Purchases 2400-000-00     50,000

• Credit Stock not Sold       7270-000-00                50,000

August

• Debit Stock not Sold        7270-000-00   25,000

• Credit Inventory Value      6200-000-00                25,000

July - P&L account

• 2400-000-00                                           50,000

August - P&L account

• No entries for this stock

The net result of this is that the cost of the goods are reflected in the period the creditor invoice was raised i.e. July.