Accounting for inventory corrections

Inventory level correction

Inventory corrections can be made one item at a time, or in bulk across all products after a stock take by using an import.

These types of journal are always in base currency.

acc-jnl-stockcorrection-header

When adding stock:

acc-stockcorrectionadd-rows

When removing stock:

acc-jnl-stockcorrectionremove-rows

Inventory price correction

Any updates made to the price (value) of items in stock will automatically post accounting adjustments.

These types of journal are always in base currency.

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This example demonstrates the debits and credits for a price increase.

acc-jnl-pricecorrection-rows_0

Unreceiving items on a purchase

When items are unreceived on a purchase order the items will be removed from stock and an accounting journal will be created to decrease assets. The entries reverse the accounting that was created when the items were received into stock. Note that unreceiving items on a purchase order differs from a stock correction since the items can be received against the order again.

These types of journals are always in base currency.

acc-jnl-unrecPO-header

acc-jnl-unrecPO-rows_0

Where multiple items are unreceived at the same time, each goods-in row deleted results in two journal rows as described above.

Where items have been allocated landed costs, this will also be reversed. If the items are received into stock again, the landed costs will be assigned once more.

acc-jnl-unreceiveLC-rows

Purchase price corrections

When items are received into stock the asset value is the item price on the purchase order at that point in time. When the purchase invoice is later received the price may need to be corrected to match the invoice. Any change to the item price will result in an accounting correction being made to make the necessary adjustments for the difference, since the item was added into stock at an incorrect value.

These types of journals are always in base currency.

Note that the price correction will be posted directly to cost of goods sold and will not update the item value in stock. Once the items are sold the overall correct cost of goods sold will be reported for the sale.

- Journal type will be GO.
- Journal will move asset from the Goods Received Not Invoiced code to the COGS (stock) code for the item.
- Journal date will be the same as the purchase invoice.

 

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