Manual
Adjusting and counting stock
Stock changes for reasons no document records: bread goes stale, a bag of sugar splits, a count finds more than the system expected. The Item Journal posts such changes one by one; the Phys. Inventory Journal posts the differences a count finds.
Templates and batches
Both journals are kept in batches, chosen above the lines, so several people can prepare lines apart.
- Item Journal Templates (under Setups) has the templates, each with a Type: Item for adjustments or Phys. Inventory for counts. Passion Bakery has ITEM and PHYS. INVENTORY.
- Item Journal Batches has each template’s batches, with a No. Series for the document numbers of new lines. Without one, a new line takes the Document No of the line above.
The Item Journal
| Field | What it is for |
|---|---|
| Entry Type | Positive Adjmt. adds stock; Negative Adjmt. removes it. |
| Posting Date | The date it is posted on. A new line takes the date of the line above. |
| Document No | The reference the entries are posted under. Posting needs one. |
| Item No, Description | The item. Choosing it fills the description, the base unit of measure and the default location. |
| Location | Where the stock is added or removed. |
| Quantity | How much, always positive: the Entry Type says which way. |
| Unit of Measure | Any of the item’s units. |
| Unit Cost, Amount | The value of one unit, which a positive adjustment brings stock in at (the item’s Unit Cost unless changed). Stock removed is valued by the item’s costing method instead. |
Post (under Action, with a preview) posts every line of the batch and empties it, saying how many lines were posted. Only adjustments can be posted here: purchases and sales come from their documents.
Each line makes a Positive Adjmt. or Negative Adjmt. item ledger entry, and in the general ledger moves its value between the location’s Inventory Account and its Inventory Adjmt. Account (both on Inventory Posting Setup). At Passion Bakery, what is left of the week’s bread, buns and donuts on Saturday is written off as a Negative Adjmt., to 220300 Inventory Adjustments.
Counting: the Phys. Inventory Journal
- Open Phys. Inventory Journal with an empty batch, and choose Calculate Inventory. It adds a line for each inventory item that isn’t blocked, at each location where it has stock, with Qty. (Calculated): what the system expects today. Items with no stock get a line at the default location, so stock found can be recorded.
- Print the count sheets with Physical Inventory List. Leave its Show Calculated Quantity option off for a blind count, so counters don’t see what is expected.
- Type what was counted in Qty. (Phys. Inventory). It starts equal to Qty. (Calculated), so only the lines that differ need changing. The Entry Type and Quantity show the adjustment that will be posted.
- Post. Each difference is posted as a Positive Adjmt. or Negative Adjmt., at the item’s cost, to the inventory adjustment account.
Every counted line, whether it differed or not, is kept on Phys. Inventory Ledger Entries: the Qty. (Calculated), Qty. (Phys. Inventory), the Quantity adjusted and its Amount. The item card’s Phys. Inventory Ledger Entries shows an item’s counts.
Note
Calculate Inventory only works in a physical inventory journal whose batch is empty: post or delete its lines first. Count lines can only be made by Calculate Inventory.