Because Manager is a double entry accounting system.
And inventory is part of a Businesses assets which are owned by some entity.
Following @Patch, it also shows as Inventory on hand under Assets. Once you start selling this Inventory it will increase the Income account in P&L and puts a value in an expense or cost of goods sold account. It will change the amount in retained earnings accordingly.
When clicking on retained earnings you will see the Inventory - cost and Inventory - sales entries reflected to the same amounts as in the Income and Expense accounts. Thus keeping everything in Balance as it should.
so you are saying ., it’s fine (nothing wrong) right?
I assume you have finished entering all opening balances and have not made transactions in the Manager application.
If the total equity is the same as the total equity in your previous application, then this is ok.
It is the fundamental accounting equation:
Assets = Liabilities + Equity (retained earnings is equity), or stated another way,
Assets - Liabilities = Equity