Stock adjustments to expense account or stock account?

Tilley Member Posts: 58 ✭✭

Hi community,

I have been looking into how stock adjustments re builds are handled in our reckon company file.


Can i allocate a stock adjustment to a stock account if i know the loss or gain is not real but due to the stock items variable properties.


Most of the stock adjusts are put to an expense account 'shrinkage loss & gain' and this seems fine to me when the loss is unexplained like theft or computer error etc, like at stock take time.

But where assembly builds from stocked item who quantity available is variable due to temp etc. Often the build cannot be done due "not enough stock to build this item" so the quantity on hand is adjusted to enable the build using the inventory adjust and allocated to the expense account.

Appreciate any feed back.


  • Datarec_ReckonLtd
    Datarec_ReckonLtd Reckon Staff Posts: 1,013 Reckon Staff

    Hi @Tilley

    This other community post may have readers who could provide feedback.

    Consider creating a new test file where you can provide specific examples and screenshots of what you are currently doing and how those actions affect the specific reports you are looking at.

  • Tilley
    Tilley Member Posts: 58 ✭✭

    Hi, thanks for this unput, but my question was very basic .

    My question was should stock adjustments due to variations in stock items used in build assembly's be allocated to an expense file like Shrinkage Loss & Gain or to the COS that relates to the assembly build.

    We have several items build from stock we purchase. The stock item is propane and it is used to build refillsby build assembly.

    The quantity needed to build the assembly is supposed to be 30 litres per cylinder refill.

    So if theory if I had 3000 litres I should be able to build 100 assemblies.

    But there are many variants that affect the build quantity, temp, propane already in the cylinder, human error etc. So when I do the builds I either have too much propane or too little. If I adjust the stock through the stock adjustment like with stock takes etc then this goes to the expense account as a loss or gain. But this stock is not lost or gained.

    My accountant suggested that it is not a loss or gain so I should just check what stock is available and divide it by the number of builds I need, giving me a true average of the number of litres needed for that build, that way there is no loss or gain.

    So I made a spreadsheet to help with the builds, just time-consuming altering each build to the new value every build, but workable.

    Thanks for reminding to post my solution.

  • Datarec_ReckonLtd
    Datarec_ReckonLtd Reckon Staff Posts: 1,013 Reckon Staff

    Hi @Tilley

    Thank you for sharing your findings and suggestions from your accountant.

    Hopefully, that example can help other users in a similar situation.