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Small and medium business | Business Central, N...
Answered

Initial Inventory in Financials?

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Posted on by 3,530

Hi:

Upon first starting a business, should the total dollar amount of inventory that was first imported into Business Central appear in either the Income Statement or Balance Sheet?

Thanks!

John

I have the same question (0)
  • IB-29041624-0 Profile Picture
    1,191 Moderator on at

    If correctly configured and correctly posted it should show up in the balance sheet on the inventory account defined in your inventory posting groups.

  • Suggested answer
    YUN ZHU Profile Picture
    101,973 Super User 2026 Season 1 on at

    Hi, I agree with Igne.

    I think you can test it on the Demo database. Then check it's posting group settings.

    Hope this helps as well.

    Thanks.

    ZHU

  • john.ellis Profile Picture
    3,530 on at

    Hi:

    This initial inventory "adjustment" was posted to an inventory account, as well as to an "Inventory Adjustments" account in the Income Statement section of the chart of accounts.

    When entering a journal entry to back out adjustment and "from" this Income Statement account, what offsetting account do I use in this journal entry?

    Thanks!

    John

  • Suggested answer
    IB-29041624-0 Profile Picture
    1,191 Moderator on at

    You will have to use the same offset account that was used for your inventory when the  opening balance for you G/L was posted.

    Or if your G/L opening balance is not posted yet, you should use the account that is planned for posting inventory in your opening g/l balance.

    Your accountant could advice you, most likely.

  • john.ellis Profile Picture
    3,530 on at

    Great!  Thank you, Inge!

    John

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