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.
When adding stock:
When removing stock:
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.
This example demonstrates the debits and credits for a price increase.
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.
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.
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.
This example describes a price increase. For a price decrease the debits and credits are switched.
Where multiple items on the purchase have price corrections, each order row results in two journal rows as described above.
