• From: Nigeria
  • Registered: 09/08/2007
  • Posts: 128

Topic: Inventory Adjustment GL Account

Good day all,

I am helping someone to setup Frontaccounting for his small business.

I am entering his opening inventory and I used Inventory and the Inventory Adjustment GL  for the Items. Now after entering the Inventory its showing NIL. As I check the GL transaction, debit & credit is Inventory.

Please which account do I use as Inventory Adjustement GL. Do I create one or use the Purchase Price Variance that is used as default by FA.

thanks

Popsicles12

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,178

Re: Inventory Adjustment GL Account

All opening balances in amounts are made through a journal entry that is balanced. All inventory opening balances too can be done through a dummy sales / purchase account that can be settled as paid/received onto the suspense account in a balanced manner. Mere creation of stock on hand will not have its value balanced off.

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