• From: Nigeria
  • Registered: 09/08/2007
  • Posts: 142

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: 6,278

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.

apmuthu's Website

  • Registered: 11/04/2026
  • Posts: 1

Re: Inventory Adjustment GL Account

When setting up opening inventory, I would recommend using a separate opening balance or stock adjustment account rather than automatically using Purchase Price Variance. The correct account depends on how the opening balances are being recorded, so it’s worth confirming the treatment with an accountant. I have also come across Airtool, an enterprise application platform that brings areas like inventory, purchasing, and financial management together. Having these processes connected can make it easier to maintain consistency between stock records and financial accounts.

Hope this helps!