Hi! I have a catering bussiness and would like to know how your system can assist me with an inventory variance report where I would have an opening, purchases and closing stock and could see on a monthly basis how many raw products I used.
I have already entered a closing stock which will be my opening stock for the new month. However, I do not see an option to enter a closing stock to give me a variance.
The Inventory Quantity Summary has this information
You can set the period for whatever you want
You only enter the starting balances once. The balances are then calculated using purchase invoices or goods receipts and sales invoices/delivery notes or production orders depending on how you manage the inventory
Yes…this I understand but, I would like to count stock once a month, enter it on the system and get a variance for the month.
Where do I enter a closing stock without removing the closing stock from the previous month?
You can’t manage inventory like that in Manager and use the built-in reports.
Ok, Thank you!
Another question…why would my stock on hand show in Retained Earnings?
Not sure what you mean by this?
Show some screen images describing what you see
I would not say this is not possible in Manager. I would print the Inventory Quantity Summary report to get the balances in Manager (Opening balance). Then count the stock and mark any variances. Process a journal or Inventory Write-offs to adjust the variances and then print the Inventory Quantity Summary report again to get the closing balance which will reflect the journal QTY as well (Variance).
You have probably entered opening balances for inventory items. Any opening balance in the system is cleared via Retained Earnings and you need to post the Trial Balance opening balance journal values of Inventory (or Accounts Receivable, Accounts Payable, Bank) to Retained Earnings as well.
Tx Morne
Yes I have entered opening balances for inventory items.
This is how it looks on the trial balance. It’s in Inventory on hand and in Retained Earnings.
This is where you would expect it to show up in a double entry accounting system
I notice that you have an entry in your Suspense account.
You should correct the transaction or transactions related to this value
Which is correct, Debit Inventory on Hand and Credit Retained Earnings. Now your opening balances journal needs to clear to Retained Earnings. If you have done the opening balance journal already, edit the journal so that the Inventory on Hand balance is allocated to Retained Earnings or create the journal. Apply the same principal for other accounts where you have entered opening balances, they should all clear via Retained Earnings.