Make sure that you have created a duplicated database to test this feature. Understand the automatic accounting entries to update the Inventory Valuation and Cost of Goods sold, before configuring it in the production instance.
When the Perpetual (automated) option is set to the Inventory Valuation field for the Product Internal Category, it creates and posts an automatic accounting entry for incoming and outgoing shipments. It also computes the cost of goods sold at the time of validating the customer invoice. It updates the profit and loss account and decreases the inventory valuation.
When the inventory valuation is set to Perpetual (automated), you do not need to create an accounting entry manually, as it will create ...
