Costings modify the following books:
1) Transaction types
Account payable sub-ledger of the vendor
Expense Book
Input Tax Books
2) Other Behavior:
Cost/Bill Date defaults to the date of creation.
3) Selecting Recognize Cost only after sales invoice is generated(Invoice Date) checkbox in cost/bill
Selecting the above checkbox will make sure the cost is recognized under expense books only after invoice for the corresponding shipment is issued. And the recognition is on the same date as the invoice date. If there are multiple invoices it picks the first invoice associated with the job.
4) Ledger Entries Example for different scenarios:
Scenario 1:
Cost State : Approved
Cost Date : Before Customer Invoice Date
Recognize Cost only after sales invoice is generated(Invoice Date) checkbox : Selected
We have two entries in the ledger corresponding to above scenario.
Cost Date
AP : Credit
Deferred Expense (Asset) : Debit
Customer Invoice Date
Deferred Expense (Asset) : Credit
Expense Book(Expense) : Debit
Scenario 2:
Cost State : Approved or Under Review/Costs Finalized
Cost Date : After Customer Invoice Date (Future Cost)
Recognize Cost only after sales invoice is generated(Invoice Date) checkbox : Selected
We have two entries in the ledger corresponding to above scenario.
Cost Date (Only If the Cost is Approved)
AP : Credit
Accrued Expense (Liability) : Debit
Customer Invoice Date
Accrued Expense (Liability) : Credit
Expense Book(Expense) : Debit
Scenario 3:
Cost State : Approved
Cost Date : Any Date
Recognize Cost only after sales invoice is generated(Invoice Date) checkbox : Unselected
We have two entries in the ledger corresponding to above scenario.
Cost Date (If the Cost is Approved)
AP : Credit
Expense Book(Expense) : Debit