inventory accrual issues

[paulas]

I have found our inventory accrual account a/p inventory is negative -$38,000 as at 31/3/2021 for my myob file because we received in stock into myob in April 2021 yet we were invoiced it (as matched it to our supplier invoice date) as at the 31/3/2021.  so this is causing this negative a/p error when I run the balance sheet as at the 31/3/2021.  Is there anything I can do to fix this - or does it matter – I guess in hindsight we should have tried to receive in the stock to align with our invoices dates…however this would get messy as well….

[Steven_M · Accepted solution]

Hi @paulas 

The dates entered on transactions are important as these are the dates on which the transactions will be reported on.

In your case, as those purchase transactions are dated after you have sold them (within the software) you would have a negative situation develop in the file. This negative situation is reporting as expected based on the order of events and the amounts entered. 

If you are needing to clarify that order of events and its impact on the Balance Sheet and the accounts, then we do recommend speaking with an accounting advisor. However, based on the process it is working as I would expect based on the dates and order of events occurring.

Should you need to look at having a positive value for that inventory account, I would be looking at reviewing the dates and amounts you have used on your transactions. In theory, these can be changed to be a new date which will cause reports to show the values based on those new dates. Alternatively, you may be looking at deleting those transactions and redoing with the correct dates.

[paulas]

yes I had thought about deleting them but too may - and my accountant will take these into account - so all good

[paulas]

under stood thanks