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Physical Inventory Adjustments - GL Accounts


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When we do an inventory count, the adjustment hits 66102 - Physical Inventory Adjustments which we have specified as a COGS account.

 

However, there are certain items (such as packaging), which, when adjusted should flow through a different account (the one specified on the stock item screen). 

 

Is there a way to set up inventory counts that post adjustments directly to the related stock item expense account rather than the physical inventory adjustment account?  

Best answer by dcomerford

There is a way you could do it on the Posting Class you set the Reason for Physical Inventory Adjustments. So Create another physical Inventory reason code for Packaging and point that to the GL code you want 58600. Create a posting class for Packaging items (you may already have this)  and set it to use this reason then ensure your packaging items are using this posting class can be driven from item class. That should work. 

 

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6 replies

Kandy Beatty
Captain II
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Hi @jwarren 

Are you referring to when you do a Physical Inventory count and you have the adjustment as the outcome?

It create the adjustment with the Reason Code.

 

 


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  • Author
  • Varsity II
  • 107 replies
  • June 13, 2023

@kandybeatty49 

 

Right - so when I look at the Reason Code settings, seems as though I can only specify the sub-accounts within account 66102. Instead of being able to have the adjustment hit 58600 for packaging material as an example?


Kandy Beatty
Captain II
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Hi @jwarren 

If you changed the Combine subaccount to I, it would pull From a subaccount associated with the inventory item. 


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  • Author
  • Varsity II
  • 107 replies
  • June 13, 2023
kandybeatty49 wrote:

Hi @jwarren 

If you changed the Combine subaccount to I, it would pull From a subaccount associated with the inventory item. 

Which we would then use to reclass to 58600?

 

Most of our adjustments in a physical inventory count will hit 66102, and will be included as part of COGS. But there are certain physical inventory count adjustments, such as packaging, which should hit 58600 which is not a COGS account but a warehousing expense.

 

When we do an inventory issue for these packaging items, it hits 58600 as we want. But when it goes through physical inventory adjustment it goes to 66102 instead.

 

Sounds like we will need to use III-III in order to create manual journal entries to move certain adjustments from 66102 - Physical Inventory Adjustments (COGS) to 58600 - Packaging (Warehousing Expense), if I am understanding correctly?


dcomerford
Captain I
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  • Captain I
  • 579 replies
  • Answer
  • June 14, 2023

There is a way you could do it on the Posting Class you set the Reason for Physical Inventory Adjustments. So Create another physical Inventory reason code for Packaging and point that to the GL code you want 58600. Create a posting class for Packaging items (you may already have this)  and set it to use this reason then ensure your packaging items are using this posting class can be driven from item class. That should work. 

 


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  • Author
  • Varsity II
  • 107 replies
  • June 15, 2023
dcomerford wrote:

There is a way you could do it on the Posting Class you set the Reason for Physical Inventory Adjustments. So Create another physical Inventory reason code for Packaging and point that to the GL code you want 58600. Create a posting class for Packaging items (you may already have this)  and set it to use this reason then ensure your packaging items are using this posting class can be driven from item class. That should work. 

 

Thanks - this was exactly what I was looking for. This allows us to specify a different account/different reason code that is used during physical inventory adjustments.

 

Can the same be done for adjustments that flow through Inventory Adjustments? The default is for INADJUST reason code but same issue - it requires one single account rather than GL accounts based on inventory type. 

 

Is there a similar ability to specify on the posting class a different reason code based on item class when doing an inventory adjustment? As we did above for physical inventory adjustments?

 

 


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