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Session Id :
Small and medium business | Business Central, N...
Answered

Initial Inventory in Financials?

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Posted on by 3,510

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)
  • Inge M. Bruvik Profile Picture
    1,111 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
    95,712 Super User 2025 Season 2 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
    3,510 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
    Inge M. Bruvik Profile Picture
    1,111 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
    3,510 on at

    Great!  Thank you, Inge!

    John

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