What is the GL impact when receiving orders in NetSuite?

When receiving orders in NetSuite, the General Ledger (GL) impact accurately reflects the movement of assets and liabilities related to inventory and accounts payable.

The correct answer involves debiting the Inventory Asset account and crediting Accounts Payable. This means that when inventory is received, the value of the inventory that is added to the books is recorded as an asset. Debiting the Inventory Asset increases this asset on the balance sheet. At the same time, since a liability is created by the purchase (because the company usually owes money for that received inventory), the Accounts Payable account is credited, increasing the liabilities on the balance sheet.

This entry shows a proper matching of the accounts with the transaction's nature: an increase in assets due to the addition of inventory and a corresponding increase in liabilities because payment is owed for that inventory.