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Contra Purchasing GL accounts in General Posting setup

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Posted on by October Sky

Hello

For companies that have stock, why do some companies use contra GL accounts in the General posting setup in BC. What is the purpose of having these contra accounts?

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Dynamics 365 Business Central

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Valentin Castravet Super User 2025 Season 1 on at

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Contra Purchasing GL accounts in General Posting setup

Hope this helps as well - Purchases and Direct Cost Applied Accounts in Dynamics 365 Business Central - Part 1 - Dynamics 365 Business Central Insights

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/
October Sky on at

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Contra Purchasing GL accounts in General Posting setup

Thanks @Ramesh Kumar

Still I'm not really understanding why you need to separate out inventory movements or cost adjustments from other purchases. Perhaps some examples might help me understand better.
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Ramesh Kumar on at

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Contra Purchasing GL accounts in General Posting setup

I think you main purpose is your want Separation of Inventory Movements and Better Control Over Cost Adjustments

Cost adjustments (e.g., revaluations or corrections) can be tracked separately before moving them to the final COGS or inventory accounts.

Helps avoid incorrect financial reporting and simplifies audits.

Thanks!

Ramesh

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