View Full Version : Inventory adjustment entry
skciha
Jan 23, 2009, 11:33 AM
I need to know what type of entries I would make to adjust inventory, for example when I need to adjust inventory from one item to another or my stock count is off and I need to add or subtract inventory.
codyman144
Jan 23, 2009, 01:38 PM
If you move find you have more of one item and less of another if they are the same value and are recorded in the same inventory account no entry is needed. You would however like to adjust you inventory stock counts in your inventory system. Which raises a question, what kind of inventory system are you using? Most will do these kinds of adjustments for you and you can print a report to tell how much to debt and how much to credit.
If the pieces are in different accounts you would debt the account where you found more and credit the account where there is less for the value of the inventory involved.
If your account stock is off lets just say less than expected then you would
Debt: An expense account (Like the one you usually use to record inventory expenses)
Credit: Inventory
If you have more than expected you would do the opposite.
This is an oversimplified answer and I would need a lot more information to give you a 100% correct answer. Like what kind of business are you in, do you usually sell the inventory for a profit? What accounts do you have available to use? Have you already booked a reserve for inventory losses? What kind of system are you using to track your inventory?