I have a problem with some items in our inventory where the item has been allocated to the wrong account when it was first brought into stock.
Does anyone know what will happen if I edit the inventory item and correct the account for Income Account for Tracking Sales?
The correction should be ok for future sales, but what will happen to the accounts for past sales?
Hi Learoy,
Changing an inventory item's sales category will only jazz up your new sales transactions, not past ones. Historical sales will remain recorded against the original sales category. To rectify this for financial reporting purposes, a journal entry is recommended. You can check out this post which is related with changing inventory category.
Cheers,
Princess
Hi Princess,
Thank you for your help & the links which I will follow for the journal entries.
Regards,
Learoy
