Choosing Service Management Debit Accounts for Cost Transactions

The following options are available when setting up invoice accounts.

Debit accounts for cost transactions are chosen in Service Management.
You can choose a debit account for cost transactions other than the default debit account from Microsoft Dynamics GP. If the option is not marked, the account comes from Microsoft Dynamics GP setup. Mark the Use Service Debits Accounts for Microsoft Dynamics GP Costs checkbox in the Service Options window (Microsoft Dynamics GP > Tools > Setup > Service Management > Module Setup > Service Options).
Debit accounts for cost transactions are chosen in Service Management and/or you are using the cost of goods sold (COGS) distribution option.
When using the COGS distribution option, Service Management uses the designated account as a debit when the cost transaction is entered and then credits the same account to relieve costs when the service invoice is saved or the maintenance invoice is posted. Mark the Create COGS Distributions for Invoices checkbox in the Invoice Options window (Microsoft Dynamics GP > Tools > Setup > Service Management > Invoice Setup > Invoice Options). Marking this option enables the Cost Dynamics GP button in the Invoice Accounts window and the Maintenance Accounts window. This option is not available if you are using SOP Invoicing.
Cost distributions create a GL transaction when the costs associated with a maintenance contract call are posted.
By distributing costs to the GL when posting MC or MCC costs, the GL is updated. Mark the Create Separate GL Transactions for Costs checkbox in the Maintenance Options window (Microsoft Dynamics GP > Tools > Setup > Service Management > > Maintenance Setup > Maint. Options). Marking this option enables the Batch ID field in the Maintenance Costs window. If this option is not marked, the Batch ID field is disabled.

Options Marked in Service Management Setup		Microsoft Dynamics GP Costs		COGS in AR Transactions (Maintenance Contracts: GL Transactions)
Use Service Debit Accounts for Microsoft Dynamics GP Costs	Create COGS Distributions for Invoices (Maintenance Contracts: Create Separate GL Transactions for Cost)	Debit	Credit	Debit	Credit
		Supplied by GP	Supplied by GP	Not applicable	Not applicable
X		Supplied by Service Management Based on division of call Typically a COGS account	Supplied by GP	Not applicable	Not applicable
	X	Supplied by GP	Supplied by GP	Supplied by Service Management Based on division of call Typically a COGS account	Supplied by Service Management Based on division of call Typically a WIP account
X	X			Supplied by Service Management Based on division of call Typically a COGS account	Supplied by Service Management Based on division of call Typically a WIP account

The posting journals include inventory, COGS, accounts receivable, sales, discounts, salesperson, and commissions distributions, though only inventory and COGS distributions are posted to the general ledger.