Inventory account increases even when sales are introduced

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Ian Towell
Ian Towell Member Posts: 12 ✭
edited February 2017 in Reckon Accounts (Desktop)
Our accountant has told us the ""Inventory Account is increasing, even when sales are introduced. Can someone please advise?

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  • Chris McGregor
    Chris McGregor Member Posts: 140 ✭
    edited May 2015
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    The only thing I can suggest is to double check the accounts you have set against your items remembering that COGs accounts are only supposed to be set against the cost of goods sold area of the item. Expense for the expense and other current asset for the asset. It's sounds straight forward but many people accidentally select the incorrect accounts when setting up items. Regards, Chris
  • Nicki Hall
    Nicki Hall Member Posts: 4 ✭
    edited May 2015
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    Hi Ian,  I'm no expert but since you haven't supplied more details with your problem, make sure each of your inventory items have been assigned to a Cost of Goods Sold account which should relate to a cost of Goods Sold Account Type in your list of Accounts; a sales account which relates to an income account type in your list of accounts and then your inventory asset account which relates to an other current asset account type in your accounts list.

    Each item sale will then have a cost (expense), sale price (income) and reduce from the inventory asset account as the item decreases in number (is sold).


    Hope this helps.  Sometimes its quite simple.


  • Chris McGregor
    Chris McGregor Member Posts: 140 ✭
    edited May 2015
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    Couldn't have said it better :)
  • Sally McIntosh, Accredited Consultant
    Sally McIntosh, Accredited Consultant Accredited Partner Posts: 468 Accredited Partner Accredited Partner
    edited February 2017
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    Hi Ian,
    As Nicki has pointed out, these 3 fields are in the Item setup as follows:
    COGS - left hand side
    Income - right hand side
    Asset - Bottom of the screen.
    Kind regards,

    Sally McIntosh (Sally@samsolutions.com.au)

  • Chris McGregor
    Chris McGregor Member Posts: 140 ✭
    edited May 2015
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    Hey Ian, looks like you have 3 people all pointing to the same area to be the cause of your issue. Try creating a backup and testing on a new item to test with as it will be easier to see where the ml eu is going. assigned to the appropriate accounts as outlined by Sally, Nicki and myself and see where the funds are going for that new item. Remember to restore your backup if something doesn't workout. Let us know how you go, Chris

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