Inventory Asset - Opening and Closing stock

Question

Hi brains trust.

The company accountant is concerned our inventory asset allocations is set up incorrectly as our Chart of Account is not balancing to the balance sheet.  The accountant is not overall familiar with Reckon, he is familiar with systems that track stock through opening and closing stock accounts and the inventory asset account is used for Journal entry's.

Our Company is set up with all inventory items tracking through "Other Current Asset - Inventory Asset".

COGS and Income are posting to this account, every transaction is tracking. I have checked all inventory items are set up correctly as per the screen shot attached.

Should Reckon be posting to an open and closing stock account?

Any suggestions where I could look to find where the balance sheet discrepancy is?

Acctd4 · Answer

The balances in your Chart of Accounts (CoA) are real-time running balances - & therefore on an "Accrual" basis - & go back from the very start of the company file to date, whereas your Balance Sheet will be for a specific period in time.

The Balance Sheet also has the option to reflect figures on a Cash or Accrual basis but - as above - the running balances shown in your CoA are always Accrual only.

Bernessa Roost · Answer

Hello Shaz,

I hope you are well today!

Thank you for your response, very much appreciate your time.

All items are set up as below, Purchase against COGS, Sales against Income, Asset account - Inventory Asset.

I have checked every item to ensure they are correctly entered yet my balance sheet is not balancing to my chart of accounts.

Acctd4 · Answer

The Items themselves should be set up linked to the appropriate sales or expense/COGS account, not inventory asset.

The Inventory Asset account is where RA posts the value movements to accordingly, as transactions are entered.  (You will see at the bottom of the each Item screen, the Inventory Asset account is linked there only)