Inventory Account balance not changing after inventory adjustment

Question

Help please,&nbsp;i have started a new business and using account 19 premier.&nbsp;We did a stock adjustment to bring in the opening inventory - we did an import file.&nbsp;It imported all fine.&nbsp;&nbsp;When i look at inventory in MYOB - i see stock on hand, and i see each item has a value.&nbsp;&nbsp;Everything looks good.&nbsp;&nbsp;When i checked the balance of the inventory account in the chart of accounts the balance was $0.&nbsp;&nbsp;Very confused, i went and checked the transaction journal, and I see the value of the inventory we bought in, then an equivalent value credit applied.&nbsp;&nbsp;&nbsp;Have i done something wrong?&nbsp; Why is this credit there, i dont recall doing anything that would have resulted in this.&nbsp;&nbsp;Screen shot attached.&nbsp;I did the import un a few chunks of data, and each and every data import has a credit that matches the value import 100%.&nbsp; Surely i have missed a step.&nbsp;&nbsp;Account Right - desktop version.&nbsp;

gavin12345 · Answer

Hi TimThis is normal. When you did the IAJ, the account you specified was 1-1400 - this determines where the credit goes. What you have done is updated your Item Register. Now you need to do is a General Journal to set the value of your inventory account (1-1400). Ideally the balance of that account should match the Item Register value - this can be checked by generating an Inventory Value Reconciliation Report. You should check and reconcile this regularly.&nbsp;You will need to check with your accountant about the General Journal. The DR will be to account 1-1400, however where the CR goes depends on how the inventory was funded.&nbsp;RegardsGavingavinw222@gmail.com

timmuller · Answer

Thanks for the reply, i think i follow but just to clarify.

We have just purchased the business, and this was an import of the opening stock we took on as part of the purchase price.

So in theory, I should go and add an opening balance entry to the 1-1400 (Inventory Account) and this opening value should reflect the same value as the credits visible transaction journal & verified by inventory value reconciliation report?

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Inventory Account balance not changing after inventory adjustment

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