Hi Tim
This 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.
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.
Regards
Gavin
gavinw222@gmail.com
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?
