i have a client who has starting inventory balances in multiple locations. Could somebody explain to me the best way to enter opening inventory balances in multiple locations since the inventory item allows the selection of only one inventory location for starting balance. For example how best to enter the starting balance for location B where one inventory item has 129 items in location A and 45 items in location B
The good news is this will only happen once.
Initially, set starting balances that include the total from all locations at a single location. This could be a location that actually has the most inventory, the same location for all items, or the default Unspecified location. It does not matter, though it would probably be easiest to keep things consistent to reduce errors later in the process.
Then, enable the Inventory Transfers tab, if not already active. Create an inventory transfer for everything moving from A to B. Create another for movements from A to C, then A to D, and so on. Then, if everything wasn’t in the same initial location, go back and create transfers for B to A, B to C, B to D, etc. Then C to A, C to B, etc. All items moving from/to the same locations can be on one transfer form.
So if there are only locations A and B, I would set all starting balances to location A. Then do a single transfer for things moving from A to B.
Thanks, but this implies currently one has to finish counting inventory at all locations before entering opening inventory balances. . This becomes difficult with clients with many stock items at many locations because stock taking at a particular location could take days to complete and stock keeps on changing . We will manage with this solution for now since there is no better way but I think the ability to add more lines in the inventory location field could be considered in future to make thinks easier
No, you just take the closing balances from the previous accounting system. Whenever you get around to a physical count, you enter adjustments at that time. There is no reason the two events have to be simultaneous. And some businesses never physically count inventory at all. (I’m not saying that’s a good idea, only that it illustrates how the actions can be separated.)
Please, How best could this adjustment be done? By updating stock starting balances?
For a reduction, use an inventory write-off. Unfortunately, upwards adjustments must be done through journal entries.
I am a bit confused about your solutions. We are taking on starting inventory balances so inventory write-offs will not work since it only allows stock reduction and not stock increases. Journal does not also allow selection of locations so i dont know how we can i enter opening inventory balances with journal. Stock starting balances for one location have been entered and we are looking for the efficient way to enter the starting balances for the other locations
You asked how adjustments would be made. Your question seemed to be in response to my response about entering closing balances from the previous system and dealing with actual count adjustments later. So my answer was meant to explain that when you make a physical count that disagrees with Manager’s count, you enter the adjustments as inventory write-offs if they are negative and journal entries if they are positive. That particular answer had nothing to do with starting balances. Sorry if I was confusing.
You don’t enter starting balances with a journal entry. I never said you did. I said upwards adjustments had to be made with a journal entry.
You are right. I thought it did if locations had been defined. Since it doesn’t, enter the transaction this way:
This will increase the quantity on hand by 3 units without changing any values and keeps the transaction out of Suspense. The adjusted units go to the Unspecified Location. Then you can transfer them to wherever they actually were found.
Unfortunately, there isn’t one. Presumably you didn’t enter your full count at the one location. So you will have to go back and raise those quantities, then execute the transfer to the other location. But you can adjust the quantities using Batch Update.
noted with Thanks