Good evening,
When using a Job Journal to transfer inventory to a job, in addition to the Job Ledger Entries, General Ledger journals are generated.
These journals credit the Inventory Account (Balance Sheet - Inventory Posting Setup) and debit the Inventory Adjustment Account (Income Statement - General Posting Setup).
It appears that all inventory adjustments, e.g. stock counts, damaged items, are also posted to the Inventory Adjustment Account. If my understanding is correct, as its name suggests, it records all inventory adjustments.
However, I have a requirement to split inventory adjustments across two Income Statements accounts. One for transfers to jobs adjustments and the other for all other adjustments.
I have two questions:
- Is my understanding of the use of the Inventory Adjustment Account correct?
- If it is, is there a way of separating adjustments in the Income Statement as described above?
Any advice would be much appreciated.
Regards,
Michael
