Reference · Inventory
Item ledger entry types
Every movement of stock is an item ledger entry, and its Entry Type says why. The quantity is in the item’s base unit: positive brings stock in, negative takes it out.
| Entry Type | Posted by | Quantity | G/L: inventory against |
|---|---|---|---|
| Purchase | A purchase order’s Receive; a purchase invoice; a purchase credit memo or return order’s Ship | In; out for a return | Goods Received Not Invoiced until invoiced, else Direct Cost Applied |
| Sale | A sales order’s Ship; a sales invoice; a sales credit memo or return order’s Receive | Out; in for a return | COGS Account |
| Positive Adjmt. | The Item Journal; a count that found more on the Phys. Inventory Journal | In | Inventory Adjmt. Account |
| Negative Adjmt. | The Item Journal; a count that found less | Out | Inventory Adjmt. Account |
| Transfer | A transfer order’s Ship and Receive: two entries each, out of one location and into the next | Out and in | Nothing else: the two balance |
| Assembly Consumption | Posting an assembly order: one for each component | Out | Inventory Adjmt. Account |
| Assembly Output | Posting an assembly order: the item made | In, at the components’ total cost | Inventory Adjmt. Account |
What each entry costs
| Entry | Its cost |
|---|---|
| Stock coming in from a purchase | The purchase amount without VAT, corrected by the invoice if it differs |
| Stock coming in from a positive adjustment | The journal line’s Unit Cost × quantity |
| Stock coming in from a transfer | What it cost when it left the other location |
| Stock coming back on a sales return | What it cost when it left on the invoice it was sold on |
| An Assembly Output | The total cost of its Assembly Consumption entries |
| Stock going out | By the item’s costing method: FIFO or Average |
Document types
An entry’s Document Type says what it was posted from: Sales Shipment, Sales Invoice, Sales Return Receipt, Sales Credit Memo, Purchase Receipt, Purchase Invoice, Purchase Return Shipment, Purchase Credit Memo, Transfer Shipment, Transfer Receipt, Posted Assembly, or blank for a journal.
At Passion Bakery
| Entry Type | Typical entry |
|---|---|
| Purchase | 1,000 KG of wheat flour received from Nile Flour Millers |
| Assembly Consumption | −125 KG of wheat flour taken by the morning’s bake |
| Assembly Output | 250 white loaves made |
| Transfer | 70 loaves out of BAKERY into VAN, then out of VAN into SHOP |
| Sale | −55 loaves invoiced to Kisementi Fresh Market |
| Negative Adjmt. | Saturday’s stale bread written off |
See Costing and the general ledger for how the entries are valued.