Where to Define Direct Cost Applied Accounts

C.

The Direct Cost Applied account is an account used to track the direct cost of goods sold for inventory items. This account is used to record the cost of the items sold when the item cost is not included in the inventory value. For example, if a manufacturing company sells a finished good that was made from raw materials, the cost of the raw materials used in the production process is recorded in the Direct Cost Applied account.

To define the Direct Cost Applied account in Dynamics 365 Business Central, you need to go to the Inventory Posting Setup page. This page is used to set up the accounts that are used for inventory transactions.

To access the Inventory Posting Setup page, follow these steps:

1. Open Dynamics 365 Business Central.
2. Go to the Search bar and search for "Inventory Posting Setup."
3. Select the Inventory Posting Setup page from the search results.

Once you are on the Inventory Posting Setup page, you can define the Direct Cost Applied account by following these steps:

1. Scroll down to the "Direct Cost Applied Account" field.
2. Click on the field to open the Account List page.
3. Select the account you want to use for the Direct Cost Applied account.
4. Click "OK" to save your changes.

Alternatively, you can also define the Direct Cost Applied account on the General Posting Setups page. This page is used to set up the default accounts used for various posting groups.

To access the General Posting Setups page, follow these steps:

1. Open Dynamics 365 Business Central.
2. Go to the Search bar and search for "General Posting Setups."
3. Select the General Posting Setups page from the search results.

Once you are on the General Posting Setups page, you can define the Direct Cost Applied account by following these steps:

1. Scroll down to the "Direct Cost Applied Account" field.
2. Click on the field to open the Account List page.
3. Select the account you want to use for the Direct Cost Applied account.
4. Click "OK" to save your changes.

It is important to note that neither the Item Cards nor the Vendor Posting Groups are used to define the Direct Cost Applied account in Dynamics 365 Business Central.