Material accounts can be setup when you want item transactions to belong to their respective accounts. Consider a scenario where raw materials are sold to a party and a material account called raw material has been setup. Now, whenever a transaction takes place, it reflects on this material account.

Code & Name

• Code/Name

Enter the code and name for the material account that is to be created. Give a name that is relevant to the material.

• Stock Account

This is the value wise account of the maintained stock where your material account is maintained.

Similarly if you maintain separate accounts for Consumption and Cost of Goods, choose those here. If not, you can provide the same account chosen for Stock Account.

Checking Transaction Type Based generates all the transactions available in the form of a table. If the transaction is relevant to the material account you want to create then select the account accordingly. So you can leave out the redundant transactions if need be as shown above.