Customs Allocation Account and Customs Expense Account

Hi All,
Can any one tell me what is the use of Customs allocation Account and Customs Expense Account.
When and where these accounts will be used.
If  possible provide with examples of journal entry.
Regards
Shashi

Hi,
Custom allocation iaccount are used with the landed cost.
It's defined in Setup > Inventory > Custom Group. You will have to define both the Custom allocation account and the Custom Expense account. On the Item Master Data, the custom group is found on the Purchasing tab.
In Purchasing/AP > Landed  cost, if the field Custom Affects Inventory is checked then your custom allocation account will be credited and the inventory account will be debited (inventory value goes up).
If the field Custom Affects Inventory is unchecked, the custom allocation account will still be credited but the custom expense account will be debited instead.
Hope this help
Regards

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