Accounting for stock corrections
When items are added or removed from inventory, an accounting journal is automatically posted to adjust the asset value of inventory on the balance sheet. All stock 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 stock corrections will affect the relevant account code chosen at Settings > Company > Accounting: Nominal codes.
Stock correction audit trail and traceability
When a stock correction is made, the journal and the inventory audit trail will record the following information:
- Inventory movement ID
- Product ID
- User name
This makes it easy to traced the accounting journal directly back to a specific stock correction.
And on the audit trail: