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Hi, I have struggled with the inventory part of the program since we started with it 3 years go. I really want to use it for this year. We have given our year end inventory for 2018 to our accountant. Will I enter this into the inventory as old or new? Then when we harvest this fall I will add in as new again to adjust. My issue in the past was when we received our year end adjustment entries from our accountant they have a lump sum dollar amount for all the grains. So last year I set up an inventory account called all grains and posted the entry that way. What is the proper way to record and post inventory or is there a video you can refer me too.
Hi Sandra, If possible, ask your accountant to split up the inventory by commodity rather than giving you a lump sum amount. You handled it the only way you could last year. You're also correct about how to enter the inventory adjustments. When adjusting inventory, the best practice is to enter the change when it happens. Inventory gets reduced when you enter a sale and increased when you enter your harvest adjustment in the fall.
As far as this year's ending inventory, since you've sent it in to the accountant, now is an excellent opportunity for them to do those year-end value adjustments by commodity rather than as a lump sum. Ask them for that. Then when you are entering the year-end adjustment, you can just include the quantity to make sure that your inventory accounts are updated properly.
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