Transaction Event Keys

A transaction/event key is a key to differentiate account determination by business transaction.

BSX – Inventory Posting Debit:

This transaction event key is used to record the debit of the stock account for a material.

For example, when a material is received from a vendor, the BSX transaction event key is used to record
the increase in inventory value of the material.

Here is a simple example of how BSX is used. You create a purchase order for 100 units of a material. The
purchase order price is $10 per unit. You receive the materials from the vendor.

The BSX transaction event key is used to record the debit of the stock account. The stock account is
debited by $1000, which is the value of the materials received.

WRX – GR/IR Clearing Account:

This transaction event key is used to record the credit of the GR/IR clearing account for a material.

The GR/IR clearing account is used to track the difference between the goods received and the invoices
received for a material.

Here is a simple example of how WRX is used. You create a purchase order for 100 units of a material.
The purchase order price is $10 per unit.

You receive the materials from the vendor. You receive an invoice from the vendor for the materials. The
invoice price is $11 per unit.

The WRX transaction event key is used to record the credit of the GR/IR clearing account. The GR/IR
clearing account is credited by $100, which is the difference between the purchase order price and the
invoice price.

GBB – Goods Issue/Scrapping/Delivery of Goods:

This transaction event key is used to record the debit of the consumption account for a material.

For example, when a material is issued to production, the GBB transaction event key is used to record the
decrease in inventory value of the material.

Here is a simple example of how GBB is used. You create a production order for 100 units of material.
The standard price of the material is $10 per unit.

You issue 100 units of the material to production. The GBB transaction event key is used to record the
debit of the consumption account.

The consumption account is debited by $1000, which is the value of the materials issued.

BSV – Stock Change Account: (for materials with Standard Price).

This transaction event key is used to record the change in inventory value as a result of a material
transaction, when the material is valuated at standard price.

For example, if you receive materials from a vendor at a price that is different from the standard price, the
BSV transaction event key is used to record the change in inventory value.

Here is a simple example of how BSV is used. You create a purchase order for 100 units of a material that
is valuated at a standard price. The purchase order price is $10 per unit.

You receive the materials from the vendor. The actual cost of the materials is $9 per unit. The BSV
transaction event key is used to record the change in inventory value. The inventory value is decreased by
$100, which is the difference between the purchase order price and the standard price of the materials.

FRL – External Activity:

This transaction event key is used to record the cost of external activities, such as subcontracting,
consulting, and transportation.

The FRL transaction event key is used in conjunction with the GBB transaction event key to record the
cost of external activities as a decrease in inventory value.

Here is a simple example of how FRL is used. You subcontract the production of 100 units of material to a
vendor. The cost of the subcontract is $1000.

The FRL transaction event key is used to record the cost of the subcontract. The inventory account is
debited by $1000.

The GBB transaction event key is used to record the decrease in inventory value. The consumption account
is debited by $1000.

VBO – Consumption from Stock of Material Provided to Vendor:

This transaction event key is used to record the consumption of a material that is provided to a vendor as
part of a service contract.

For example, if you provide a vendor with 100 units of a material as part of a service contract, the VBO
transaction event key is used to record the consumption of the materials.

Here is a simple example of how VBO is used. You have a service contract with a vendor to provide them
with 100 units of material per month.

You issue 100 units of the material to the vendor in the first month of the contract. The VBO transaction
event key is used to record the consumption of the materials. The consumption account is debited by
$1000, which is the value of the materials issued.

VBR – Internal Goods Issue:

This transaction event key is used to record the consumption of a material that is issued from one
organizational unit to another within the same company.

For example, if you issue 100 units of a material from your warehouse to your production department, the
VBR transaction event key is used to record the consumption of the materials.
Here is a simple example of how VBR is used. You have a warehouse that stores materials for your
production department.

You issue 100 units of a material from the warehouse to the production department. The VBR transaction
event key is used to record the consumption of the materials. The consumption account is debited by
$1000, which is the value of the materials issued.

ZOB – Goods Receipts without Purchase Orders:

This transaction event key is used to record the receipt of materials into inventory when there is no
corresponding purchase order.

For example, if you receive materials from a vendor that were not ordered, the ZOB transaction event key
is used to record the receipt of the materials.

Here is a simple example of how ZOB is used. You receive a delivery of materials from a vendor. The
materials were not ordered, so you do not have a purchase order for them.

The ZOB transaction event key is used to record the receipt of the materials. The inventory account is
credited by the value of the materials received.

KBS – Account Assigned Purchase Order:

This transaction event key is used to record the goods receipt of materials that are purchased against a
purchase order with account assignment.

For example, if you purchase materials from a vendor and specify a specific G/L account for the purchase,
the KBS transaction event key is used to record the goods receipt of the materials.

Here is a simple example of how KBS is used. You create a purchase order for 100 units of material. You
specify a specific G/L account for the purchase. You receive the materials from the vendor.

The KBS transaction event key is used to record the goods receipt of the materials. The G/L account that
you specified is debited by the value of the materials received.

PRD – Price Differences:

This transaction event key is used to record price differences that arise when the price of a material is
different from the standard price.

For example, if you purchase materials from a vendor at a price that is different from the standard price,
the PRD transaction event key is used to record the price difference.

Here is a simple example of how PRD is used. You purchase 100 units of a material from a vendor at a
price of $10 per unit. The standard price for the material is $11 per unit.

The PRD transaction event key is used to record the price difference. The inventory account is debited by
$100 and the price difference account is credited by $100.

UPF – Stock Transfer with Price Update:

This transaction event key is used to record the transfer of materials between different organizational units
within the same company, and to update the price of the materials at the same time.
For example, if you transfer 100 units of a material from your warehouse to your production department,
and the price of the material has changed since the materials were originally received, the UPF transaction
event key is used to record the transfer and update the price.

Here is a simple example of how UPF is used. You have a warehouse that stores materials for your
production department. The price of a material has changed since the materials were originally received.
You transfer 100 units of the material from the warehouse to the production department.

The UPF transaction event key is used to record the transfer and update the price. The inventory account is
debited by the new price of the materials.

KON – Consignment Liability:

This transaction event key is used to record the liability for materials that are held by a vendor on
consignment.

For example, if you receive a consignment of materials from a vendor, the KON transaction event key is
used to record the liability for the materials.

Here is a simple example of how KON is used. You receive a consignment of 100 units of a material from
a vendor. The value of the consignment is $1000.

The KON transaction event key is used to record the liability for the consignment. The liability account is
debited by $1000.

When you issue the materials from consignment, the KON transaction event key is reversed. The liability
account is credited by $1000.