Hi all,
We are currently working on importing the opening balance of inventory for a customer and we have the below scenario;
- The customer has been using Business Central for quite some time and whenever they were buying stock, they were doing a purchase invoice against a G/L account (the Purchases G/L account 7110 in the Income statement).
- Now, they have come to us to implement inventory for them and we need to upload the opening balances.
- We have now created;
- an Inventory Account no. 2110 (balance sheet)
- an Inventory Adj. Account 7205 (Income Statement)
- Direct Cost Accounts 7122 (Income statement)
- set up the Inventory Posting Setup
- Set up the General Posting Setup accordingly.
Now we are concerned with the best way to upload the inventory opening balances considering that whenever this customer was buying stock, they were posting against the purchasing account.
Scenario 1. Most of the replies to the other questions I found in this forum suggest to Debit and credit the same account. But, if we were to do that to the Purchases account 7110 which they were already posting to, the Inventory account in the balance sheet 2110 will have no value and will start getting negative figures when sales containing items start to be posted.
Scenario 2. Then we thought that if we do an Item Journal with positive adjustment, the system will Debit the Inventory Account 2110 and Credit the Invt. Adj. Account (which seems to be a good approach since the Inventory Account 2110 has a value at the end) - but then what about the purchases account? It should be left untouched, right? Since the value of the purchase account balanced out with the trade creditors (accounts payables) account correctly during the posting of purchase invoices.
We definitely do not want the inventory accounts to have a negative figure when sales start to be posted and therefore we are inclined to proceed with scenario 2 since the aim here is to upload opening balances of inventory and not purchases which is already in Business Central. Could anyone confirm that this is a correct approach?
Your input re. the above is highly appreciated.
Thanks in advance.
