This guide breaks down the mechanics, from journal entries to software workflows, and shows how to handle freight, discounts, returns, landed costs, and accruals like GR/IR. We'll walk through perpetual vs. periodic methods, practical examples, and the controls auditors expect to see. Miss a step, and you'll chase discrepancies, overpay taxes, or. It helps to track the purchases of goods to be resold. When merchandise along with. Accounting for distribution companies is the process of tracking inventory, managing supplier payments, and monitoring margins in a business where goods are constantly flowing through your warehouses.