Inventory Calculation Issue

Hi,

I use Sale Orders, Purchase Orders, Delivery Notes, and Goods received Notes, Purchase & sale invoices.

After 50-100 orders I have inventory showing both minus & plus. The inventory in plus is showing as assets which are making the numbers wrong of assets.

What is the best way to reconcile? I want to remove all inventory so that I can get control & close any pending sale orders/purchase orders through goods receipts & delivery notes.

Although I have inventory in plus I don’t want it in the manager right now. Once all inventory goes back to 0, I will slowly put things back on track. Right now I’m totally lost.

That is not possible as they are linked to inventory items.
See guides Use goods receipts | Manager

Goods receipts can be used for quantitative tracking of inventory items purchased from defined suppliers

and Use delivery notes | Manager for Delivery notes.

Besides how would you produce accounts if you ignore all your inventory movements?

I’m not ignoring, I’m trying to take control of the movements. Once I have the complete control of all the movements with respect to buying & selling, my accounts will be normalized.

That is entirely dependent on the entries you have made. If you have designated inventory item quantities to be tracked, you must use goods receipts and delivery notes. If you have not, you should not, or you will end up double-counting quantity movements.

Why do you say this? Inventory is an asset. Where else would you expect it to show?

That is not how accounting works. First, sales and purchase orders have no financial effects. The status of their fulfillment is controlled by sales and purchase invoices, respectively. Delivery notes and goods receipts, if used for the particular inventory items, controls the quantitative—as opposed to financial—aspect of invoices.

Yes, it seems you are indeed lost. Why would you want inventory to go to zero? The only condition under which that would make sense is if you disposed of all inventory on hand or enroute. I suggest reading the three-part Guide about inventory management.