Stock adjustments causing inventory value reconciliation to be out of balance

Question

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!

mike_james · Answer

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

gavin12345 · Answer

Hi&nbsp;Mike_James&nbsp;&nbsp;Great advice as usual, however puzzled by your intro - what's the context?&nbsp;RegardsGavin

mike_james · Answer

Hi&nbsp;gavin12345&nbsp;, 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 · Answer

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.&nbsp;&nbsp;

gavin12345 · Answer

Hi&nbsp;Mike_James&nbsp;&nbsp;Ok - that makes sense - yes I saw another post where the 'moderator' referred to tax codes as 'finanical advice' and that the user should seek help from their 'financial advisor' - guess the AI engine still needs some work:)&nbsp;RegardsGavin

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Stock adjustments causing inventory value reconciliation to be out of balance

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