Forum Discussion

esaumellie's avatar
esaumellie
Experienced User
17 days ago

Stock Adjustments 5-3000 - Reversals

Good day,   I have posted Opening Inventory Adjustments Journals to 5-3000 Stock Adjustments (Cost Of Sales). There were a a few reversal journals due to wrong item numbers used , wrong UoM etc. ...
  • Earl_HD's avatar
    Earl_HD
    16 days ago

    Hi esaumellie ,

    In situations like this, I recommend consulting with an accountant for a precise answer. However, it is generally correct to use the same account (5-3000 Stock Adjustments) for both the initial inventory adjustments and the reversal entries. This method maintains consistency in tracking inventory adjustments and cost of sales. Using the same account (5-3000) ensures that all adjustments and reversals are recorded in one place, which simplifies management and reconciliation. This approach is usually acceptable unless your specific accounting policies or reporting requirements suggest otherwise.

    Regards,
    Earl

Earl_HD's avatar
Earl_HD
MYOB Moderator
16 days ago

Hi esaumellie ,

In situations like this, I recommend consulting with an accountant for a precise answer. However, it is generally correct to use the same account (5-3000 Stock Adjustments) for both the initial inventory adjustments and the reversal entries. This method maintains consistency in tracking inventory adjustments and cost of sales. Using the same account (5-3000) ensures that all adjustments and reversals are recorded in one place, which simplifies management and reconciliation. This approach is usually acceptable unless your specific accounting policies or reporting requirements suggest otherwise.

Regards,
Earl

  • esaumellie's avatar
    esaumellie
    Experienced User
    14 days ago

    Hi Earl_HD ,

     

    Appreciate the response. I just wanted to be sure that I have done the right thing and as per your advise; I will leave the reversals as at is a minus to Account 5-3000.

     

    Thanks again.

     

    Kind Regards,


    Esau