Def - GL Account - Cost Offset

The GL Account that is used to record the value of the Cost Item on a Production or BOM. When production occurs the sum of the value/cost of the inventory items consumed (Production Inputs) plus the value of the cost items used, are totaled to Debit the Inventory Balance Sheet Account of the output item. The inventory items that were used, Credit their Inventory Balance Sheet Account(s) as do the Cost Item(s) used. This is the GL Account used to record the value of the Cost Item(s).