It is important that all inventory adjustments are recorded in order to maintain an audit trail. In Brightpearl, inventory adjustments are recorded in two ways:
- On the inventory audit trail (under Products > Inventory audit trail)
- In an accounting entry
Inventory correction audit trail and traceability
When an inventory correction is made, the journal entry posted and the inventory audit trail will record the following information:
- Inventory movement ID
- Product ID
- User name
This makes it easy to trace the accounting journal directly back to a specific inventory correction.
The journal entry can be found by going to Reports > General Ledger and clicking 'Show filter'.
On the filter, enter in any one of the key words above into the 'Search' box, and filter for 'IA' type journals to bring up the relevant journal:
On clicking 'Filter', the journal should be one of the results:
The inventory audit trail can be accessed under Products > Inventory audit trail.
Similarly to the general ledger, clicking 'Show filter' will enable you to filter on any one of the key words which will bring up the relevant entry.
Accounting for inventory corrections
When items are added or removed from stock, an accounting journal is automatically posted to adjust the asset value of inventory on the balance sheet. All inventory movements are accounted for in base currency.
When items are added into stock the values posted to accounting are the item price given at point of adding, multiplied by the quantity.
When items are removed from stock the actual value of the items removed from stock is used. The specific items must be chosen from the inventory detail report to initiate a correction.
All inventory corrections will affect the relevant account code chosen at Settings > Company > Accounting: Nominal codes.