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nhill's avatar
nhill
Contributing Cover User
2 years ago

Stock adjustments causing inventory value reconciliation to be out of balance

Hello, I'm having trouble getting through on the phone so I thought I'd start a thread.

 

My inventory value reconciliation is out of balance (and getting worse each month). I think it's caused by the small stock adjustments I make from time to time - specifically when I use the count inventory function (to move stock from one stock number to another or to remove stock that is lost/faulty). Could you please help?

 

Thank you!

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  • Mike_James's avatar
    Mike_James
    Ultimate Partner
    2 years ago

    Hi nhill , your question relates to the use of AccountRight, which is NOT financial advice.

     

    When you record an entry on the adjustment transaction, what account number do you enter? If you enter the inventory asset account, that will cause ever-increasing out-of-balances, because the adjusting journal that is created will debit/credit the same account. The account number should be somewhere in your cost of sales, eg an inventory adjustment account. AccountRIght will automatically post the other side of that entry to the asset account. 

    • gavin12345's avatar
      gavin12345
      Ultimate User
      2 years ago

      Hi Mike_James 

       

      Great advice as usual, however puzzled by your intro - what's the context?

       

      Regards

      Gavin

      • Mike_James's avatar
        Mike_James
        Ultimate Partner
        2 years ago

        Hi gavin12345 , a message was posted just before mine indicating that the query amounted to seeking financial advice, and that should be sought from an accountant. That post has now been deleted. Some of us get immediate post updates...

    • nhill's avatar
      nhill
      Contributing Cover User
      2 years ago

      Thank you for your advice. The default account is meant to be a cost of sales account (stock adjustments) but I have noticed that it sometimes posts to my stock on hand (asset) account. It seems to alternate from one line to the next when I try to make multiple adjustments using the count inventory feature.