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I'm having trouble with adjusting my inventory at year end. I have gone to inventory to make an adjustment on corn. The balance on the right hand side before I click record accurately refects what I wanted to record. Yet, when I go to reports, it shows a different balance than the last balance that I saw before I clicked record in the inventory adjustment. I do have linked accounts. Most likely plays a role in this? How do I get my inventory report to refect my correct numbers ? Thanks!
Hi there,
I recommend using the general journal screen instead of the inventory adjustment screen when it comes to adjusting past year balances. The inventory adjustment screen will always reflect the most current balance. At year-end, your accountant may want you to value your inventory at a specific amount. If you have moved forward in your fiscal years, and continued to post sales, this may create a bit of a problem when you do a valuation adjustment through the inventory adjustment screen. This is because the inventory adjustment screen is live-updating, and does not take date into consideration. Therefore, in order to adjust your year-end inventory, you will need to take the following steps:
1)Determine, through AgExpert, what the value of your inventory is at year end.
2)Determine the value of your year-end inventory. For our example, the user would like to increase the value of the inventory to $150/tonne, for a total of $30,750. This is a difference of $3,895.00 in total dollar value.
3)Go to Transactions > General Journal. You will need to follow the following format to make a journal entry to only change the value of the inventory, without affecting the quantity.
This entry accomplishes 2 things. First, it ensures that the quantity of the inventory doesn’t change, by increasing quantity by one, and decreasing it by one, for a net effect of zero. Secondly, it adjusts the value to what you want it to be – if you net out the debit and the credit, it equals the total amount of the change in inventory value that you desire.
4)Record the transaction. Open the inventory report, and your report should be updated to the new values.