The NCAS provides an integrated set of financial and materials management modules for managing business functions. Inventory accounting entries are generated by the NCAS based on the inventory transactions processed in the Inventory, Purchasing and Accounts Payable modules. The Inventory module is linked to the Budgetary Control (BC), Purchasing (PS), Accounts Payable (AP), Financial Controller (FC) and the General Ledger (GL) modules as follows:

• The Budgetary Control module contains the Available Funds File (AFF) used by the NCAS to verify that an accounting distribution has sufficient funds for a purchase of additional inventory (expense) or issuing of inventory (consumption).
• Stock items are requested, purchased and received from vendors through the Purchasing module. When a stock item is requested through Purchasing, the on-order quantity in the Inventory module is updated. The system also checks the maximum allowable quantity for each item. When a stock item is received, the system reduces the on-order quantity and increases the on-hand quantity. The NCAS also debits the inventory asset account in the GL.
• The Accounts Payable module receives information such as prices and quantities from Purchasing for matching invoices. AP updates Inventory with any variances between the PO price and invoice price. Average inventory cost is updated based on AP variances. The system also makes adjusting entries to the inventory asset account in the GL.
• All financial information is passed to the General Ledger through the Financial Controller. The Financial Controller supplies the accounting rules and collects detailed data before posting summarized entries to the General Ledger. When a stock item is received, the NCAS automatically updates the appropriate General Ledger asset balance. The information in Inventory also allows the reconciliation of the asset balance in the GL with the perpetual balance maintained in Inventory. Cycle count results are posted to GL asset accounts.