Most of the alcohol is sent to the liver for processing when the alcohol gets to your stomach. Alcohol is less harmful if you consumed it in small amounts, but in excess, it can result to serious liver complications.
Once in the liver cells or hepatocytes, it can take one of three pathways, one of which involves an enzyme called alcohol dehydrogenase or simply ADH, and this happens in the cytosol of the cell, another involves a catalase inside organelles called peroxisomes, and a third involves being converted by the enzyme cytochrome P450 2E1, sometimes just shortened to CYP2E1.
All three of these pathways lead to the conversion of alcohol to acetaldehyde. Once the NADH enzyme is used to convert the alcohol, it needs another compound called NAD+, which is then converted to NADH. As NADH levels increase, and NAD+ levels decrease, this has two effects, higher NAD level tell the cell to start producing more fatty acids, and lower NAD+ levels result in less fatty acid oxidation, both of which lead to more fat production in the liver.