How does a Sales Order Shipment and Invoice update the GL?

The article describes the GL effect of posting a Purchase Order Receipt and separate invoice for an inventory item in Business Central.  There are two different behaviors based on the Expected Cost Posting toggle in the Inventory Setup page.

Expected Cost Posting Disabled

Posting a sales shipment

Sales shipments do not update the GL.

Posting a sales invoice or shipment with invoice

Whether posting an invoice for a shipment, or posting a shipment with invoice, the GL activity is the same.  The cost is relieved from inventory and the expense recognized.

Account	Debit	Credit	How is selection made?	Account Source
Inventory		100.00	-Inventory posting group assigned to the item -Location code on the sales line	Inventory posting setup (Inventory Account)
COGS	100.00		-General Business Posting Group for the customer -General Product Posting Group assigned to the item	General posting setup (COGS Account)
Sales		120.00	-General Business Posting Group assigned to the customer -General Product Posting Group assigned to the item	General posting setup (Sales Account)
A/R	120.00		Customer Posting Group assigned to the customer	Customer posting groups (Receivables Account)

Expected Cost Posting Enabled

Posting a sales shipment

When posting a sales shipment, only the interim inventory and COGS accounts are posted.  COGS - Interim (Shipped Not Invoice) should be a balance sheet account, and holds the future posting to COGS.

Account	Debit	Credit	How is selection made?	Account Source
Inventory - Interim		100.00	-Inventory posting group assigned to the item -Location code on the sales line	Inventory posting setup (Inventory Account - Interim)
COGS - Interim	100.00		-General Business Posting Group assigned to the customer -General Product Posting Group assigned to the item	General posting setup (COGS Account - Interim)

Posting a sales invoice

When posting the sales invoice for a shipment, the interim entries are reversed.  The cost is relieved from inventory and the expense recognized.  

Account	Debit	Credit	How is selection made?	Account Source
Inventory - Interim	100.00		-Inventory posting group assigned to the item -Location code on the sales line	Inventory posting setup (Inventory Account - Interim)
COGS - Interim		100.00	-General Business Posting Group assigned to the customer -General Product Posting Group assigned to the item on the sales line	General posting setup (COGS Account - Interim)
Inventory		100.00	-Inventory posting group assigned to the item -Location code on the sales line	Inventory posting setup (Inventory Account)
COGS	100.00		-General Business Posting Group for the customer -General Product Posting Group assigned to the item	General posting setup (COGS Account)
Sales		120.00	-General Business Posting Group assigned to the customer -General Product Posting Group assigned to the item	General posting setup (Sales Account)
A/R	120.00		Customer Posting Group assigned to the customer	Customer posting groups (Receivables Account)

Posting a shipment with invoice

When posting a shipment with an invoice, the interim accounts are not used.  The cost is relieved from inventory and the expense recognized.

Account	Debit	Credit	How is selection made?	Account Source
Inventory		100.00	-Inventory posting group assigned to the item -Location code on the sales line	Inventory posting setup (Inventory Account)
COGS	100.00		-General Business Posting Group for the customer -General Product Posting Group assigned to the item	General posting setup (COGS Account)
Sales		120.00	-General Business Posting Group assigned to the customer -General Product Posting Group assigned to the item	General posting setup (Sales Account)
A/R	120.00		Customer Posting Group assigned to the customer	Customer posting groups (Receivables Account)