Question

What is the general ledger impact when a transfer requirement is created in the warehouse management process?

a. There is no impact on the general ledger.
b. Debit inventory, credit gr/ir
c. Debit inventory, credit cogs
d. Debit gr/ir, credit inventory

Answer 1

The creation of a transfer requirement in the warehouse management process does not affect the general ledger as it is an internal document and not a financial transaction.

Step-by-step explanation:

When a transfer requirement is created in the warehouse management process, there is no impact on the general ledger. This is because a transfer requirement is simply an internal document used to trigger the movement of goods within a warehouse and does not reflect a financial transaction that would require a ledger entry. The general ledger is affected only when there is a financial transaction, such as the sale or purchase of inventory, which is not the case when a transfer requirement is created.