Stock Adjustment reconciliation

Question

I am trying to adjust the value of the inventory however it seems Adjust inventory is adding in a transaction to balance the adjustment so my inventory value does not change.

When we take metal to get painted I remove the raw metal then bring in the new painted metal with colour adding the value of the colour to the raw metal for a new inventory item with a different value as per below transaction.

As the inventory value (Asset account) did not change I have looked at the transaction in Find Transaction and see there is an extra line ($549.99) to balance the value

Why is this happening? How can I stop this from happening so the value of my inventory is correctly represented in my Asset account.

thanks

isaiah_c · Answer

Hi Rookie87,
&nbsp;
What's likely happening is that when you do a stock adjustment, the system tries to keep the overall inventory value the same by adding a balancing line (like that extra $549.99 you're seeing). It's MYOB way for making sure your Asset account doesn't change unexpectedly.
&nbsp;
Since you're converting raw material into a finished product (painted metal), a better approach might be to use an Auto-Build item, rather than adjusting stock manually. That way, you're correctly moving the cost of raw materials into the finished product without needing to manually adjust inventory values. Here's a helpful article to walk you through that: Auto-Building items.
&nbsp;
If you're still stuck or want to be sure your inventory value is showing correctly, best to reach out to our live chat support through our virtual assistant, MOCA, they can dig into your file with you.
&nbsp;
Regards,
Sai

Forum Discussion

Stock Adjustment reconciliation

1 Reply

Looking for something else?

Related content

Inventory Stock Adjustment.

Adjusting stock

Stock Adjustments 5-3000 - Reversals

Receivables reconciliation

Stock not adjusting when a sales order is entered.

Reconciliation out of balance

EFT Reconciliation report .csv format

Bank reconciliation