Inventory value not showing on Balance Sheet

Erin Hancock

I use Reckon Accounts Accounting Small Business Edition 2014.

Yesterday I turned on the Inventory function, set up all the inventory items and then Adjusted Inventory on Hand to reflect the quantity and value of items as per a recent stocktake.  

I can call an Inventory Valuation Summary report and the total quantity and value on the stocktake date is correct.

I recorded the Adjustment Account as "Inventory Asset" as per the instructions I had.

I expect that this "Inventory Asset" account would then appear on the balance sheet at the value I entered, on the stocktake date.  But its not there.

I tested it, by completing a sale of one of the items, & then the "Inventory Asset" account shows on the balance sheet at minus the value of the item sold (ie its cost of $90.24 and it shows on the Balance Sheet as -$90.24.)

Why isn't the correct value appearing on the Balance Sheet on that stocktake date, please?

Do I need to set an opening balance and if so where/when?

Thanks in advance, 
Erin 

Graham Boast

Hi Erin

Adjustment Account should be anything but "Inventory Asset".  If it's a new file, Opening Bal Equity.  If an existing file, an Expense Account called Stock Adjustments.

Graham Boast 0409317366
Reckon Accredited Consultant
graham@reckonhelp.com.au
http://reckonhelp.com.au/remotesupport.htm

 

Erin Hancock

Thanks Graham. While the file is not new, this is the first time inventory is being used so in that case "opening balance equity" would be ok to use? Erin

Graham Boast

No right answer but Opening Bal Equity may be better in this case so it doesn't distort your P&L.

Graham

Erin Hancock

Thanks again. That's what I was worried about with the stock adjustments option. E