Once the appropriate group account has been identified for an item, the NCAS uses the transaction type (e.g., receipt, issue, etc.) to locate the appropriate event identifiers for the specific accounts within the group account that need to be debited or credited.

The following diagram illustrates how the NCAS uses a combination of group account codes and event identifiers to generate the appropriate accounting entries for an inventory transaction:

Each event identifier represents a GL account that must be debited or credited for this transaction. Each inventory transaction in the NCAS is associated with multiple event identifier codes because at least two accounts must be affected by each transaction.

For example, when a warehouse receives a shipment of flour, the NCAS first locates the appropriate food group account linked to flour. Then the NCAS uses the event identifiers associated with the receipt of an item to debit or credit the appropriate accounts within the food group account.

The following table lists the 16 possible event identifiers used in the NCAS. Each event ID is associated with a company/account/center distribution. The following table also shows the account associated with each event ID.

As shown in the preceding table, the event ID has two components: the group type and the event code. Two possible group types are:

• A representing an inventory item or an asset account
• E representing expense and adjustment accounts

Note: A third group type is possible:

L representing location -- or warehouse -- specific accounting information for an item

Each A-type or E-type event ID has an accounting distribution (company, account, center) associated with it. The L type event ID is only associated with a specific company and/.or center. Generally, the accounting information associated with the L type event ID is used to override the accounting information associated with the A and E type event IDs. The L group type is not associated with an event code.