Hi guys. Is the JE debiting COGS credit cash (memo: created from Item receipt) usual for Item Receipts from TO? What are the instances these are generated and when are they not generated?

This does not sound standard. Is there is script running that is creating this journal entry?

I think it is. The context is UI under System Info. I'm thinking it was the 'use item cost as transfer price' feature?

For a transfer order item receipt you would expect the postings to be DR Inventory, CR Inventory in Transit. You wouldn’t expect it to hit COGS and Cash. The fact that it is creating a Journal entry is also unusual. The “use item cost as transfer price” feature sets the GL impact on the item fulfilment and item receipt it doesn’t create journals.

A script running on Item Receipts was really the culprit. Sorry for that but thanks!!

@Eureka Solutions Kenneth business user asking to set the AR/AP accounts on the transfer order receipt/fulfillment how does it possible?