This article is Step 4D of Understanding Accounting Integration - Control Accounts > Inventory Adjustments
To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration
Step 4D - Inventory Adjustments
This General Ledger Account that is used as the default in the Inventory Adjustment field
It will offset any adjustments entries made to the value of your inventory and this General Ledger Account Type would typically be set up as a Cost of Goods Sold account
If you do an Inventory Adjustment in Blackpurl on a Part Record and/or Unit Record but no Vendor/Customer is indicated, depending on whether it is an increase or decrease adjustment, the journals are similar to the following
- When Inventory levels or costs are increased in Blackpurl due to an Inventory Adjustment then the journal would be similar to:
Debit - Inventory General Ledger
Credit - Inventory Adjustment General Ledger
- When Inventory levels or costs are decreased in Blackpurl due to an Inventory Adjustment than the journal would be similar to:
Debit - Inventory Adjustment General Ledger
Credit - Inventory General Ledger
In our example below we are processing an Inventory Adjustment for an increase in stock against at Part Record
The above example would come over to your accounting package as a journal entry to increase the amount of inventory with an offset to your Inventory Adjustment General Ledger:
You can have as many adjustment accounts as you wish and they can be set up as Adjustment Categories ie Parts Adjustment, Unit Adjustment, rebate clearing etc
They would give you the option of selecting what Adjustment General Ledger you want to use when increasing or decreasing inventory values
In your accounting, it will then be up to your accountant to review the Inventory Adjustment General Ledger