What is the general ledger impact of the goods issue step in the fulfillment process?
A)Debit GR/IR,credit inventory
B)Debit inventory,credit COGS
C)Debit and credit to the inventory account
D)Debit COGS,credit inventory
E)No financial effect takes place at this step,so no FI document is created.

Question

Quizplus · Accepted Answer

The goods issue step in the fulfillment process results in a decrease in inventory and an increase in cost of goods sold (COGS), therefore the correct general ledger impact is to debit COGS and credit inventory.

What Is the General Ledger Impact of the Goods Issue