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Evo-ERP and DBA Classic >> Accounting >> Adjustment to stock and COGS???
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Message started by penz on 06/10/03 at 07:40:30

Title: Adjustment to stock and COGS???
Post by penz on 06/10/03 at 07:40:30

Hi,
I run the Reconcile Inv. program and when I did a few of the Finished good items were show incorrect qty's. To fix this we used INV-C to adjust the stock. However I just noticed that the COGS account got Debited and the Inv account got Credited. Our COGS is now way out of wack for the month, is there anyway I can correct this? Also why does it debit COGS?
Thanks
Jim

Title: Re: Adjustment to stock and COGS???
Post by Lynn_Pantic on 06/10/03 at 09:26:55

It has to go someplace. Generally if your inventory is off and you correct it, the other side of the entry goes to COGS or perhaps an inventory shrinkage account but that would still be in the COGS section of the income statement. In DBA, the program always uses COGS for the other side of the entry when making an inventory adjustment. You can make a GJ and move it to a shrinkage account.

In any event, if the adjustment credited inventory and debited COGS, you are removing inventory from the system that you do not have for whatever reason and it needs to be expensed.