I would suggest that the software has an option were it will be possibe to record phyisical inventory count
Physical counts are not accounting transactions. They are completely separate processes used to confirm your accounting records. So you want them to be separate. In fact, auditors will probably insist they be separate. But if you have, for example, a spreadsheet on which you record your physical count, you can attach it in a Folder for storage. See this Guide: Organize attachments with folders | Manager.
It is not that unusual for accounting software to include physical counts. However typically the count report (system vs entered count quantities) would remain as a ‘report’ until ‘approved’. The ‘approval’ would then generate the on-hand quantity adjustment transactions including the accounting entry to the inventory valuation and inventory count expense.
In the case of Manager perhaps the approved entry could simply create an ‘Inventory Write Off’ transaction with a line for the delta/change quantity +/- for each item and an allocation (account) to an expense account? In the absence of cycle count functionality. I would probably manually enter the adjustments for a count as one large Inventory Write Off transaction (you can enable this tab from Settings if you don’t already have the Inventory Write off tab displayed).
A small correction. You enable the tab by clicking Customize.
Yeah, I shouldn’t write stuff off the top of my head without actually opening the application. Thanks for the navigation correction :-).
The Inventory Write-off tab only allows for minus adjustments, for positive adjustments you need to do a Journal Entry.
It has been suggested many times on this forum that the tab should be re-named to Inventory Adjustments which allows for both minus and positive changes. Unable to understand why this restriction exists.
The best thing is to rename “inventory writeoff” to “Inventory adjustments” and let it allow for postive and negative changes
Agreed. Interestingly I was able to enter an Inventory write off with multiple lines some with negative and some with positive quantities entered, no warnings given, but absolutely it actually only decrements. Wow. Agree entirely. Can we tag this change suggestion as an IDEA? Please…