Inventory Mess

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Julie C
Julie C Member Posts: 63 ✭✭

Hi all,

My inventory is a mess. I have carried out a stock take and want to start fresh. When adjusting the quantity on hand, which adjustment account do I post to. I tried to adjust to a cost of goods account, however, I'm not sure this is the correct method as I am prompted that most users either post to an income or expense account.

We manufacture a product that has many items that make the completed item when built.

Thanks

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  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
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    Hi Julie

    A COGS account is fine. Just ignore the error, or, if you get sick of it, convert the COGS Inventory Adjustment Account to an expense account, then change it back when you're done. If you have a lot of inventory items, I'm happy to have a chat about zeroing the inventory at 30th June then reimporting the new values from a excel.

    Graham Boast | 0409317366 | graham@reckonhelp.com.au

    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • Julie C
    Julie C Member Posts: 63 ✭✭
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    Thanks Graham, much appreciated. There are about 30 items, so it shouldn't take too long. Do I need to do each item individually if it's the same adjustment account or is the 1 entry fine.

  • Graham Boast
    Graham Boast Accredited Partner Posts: 331 Accredited Partner Accredited Partner
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    No, you can do them all at once. It is also worthwhile ticking the value adjustment box so you can see (and amend if necessary) the cost basis of the product.

    Graham Boast | 0409 317366 | graham@reckonhelp.com.au

  • Julie C
    Julie C Member Posts: 63 ✭✭
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    Thanks for your Graham