Adjusting inventory

Most businesses probably won't need to use MYOB AccountEdge's inventory adjustments feature very often. If you set up your items properly and you record item invoices and item purchase orders accurately and promptly, your AccountEdge records should match your actual quantities and values.

Occasionally, however, situations will occur when you need to adjust your items' quantities, unit costs and total values in AccountEdge. When this is the case, it's important that you make your adjustments carefully so your records remain accurate.

When adjusting inventory, you should determine the type of inventory adjustment you need:

• If an item's actual inventory quantity is lower than your MYOB AccountEdge records indicate due to unexplained loss or theft, you should enter a typical inventory adjustment. (To adjust item quantities)
• If an item's actual inventory quantity is lower than your AccountEdge records indicate because you've conducted sales without entering AccountEdge item invoices, you should enter a typical inventory adjustment. (To adjust item quantities)
• If an item's actual inventory quantity is higher than your AccountEdge records indicate because you've made purchases without entering AccountEdge item purchase orders, you should enter a typical inventory adjustment. (To adjust item quantities)
• If the actual inventory quantities of many of your items are different than your AccountEdge records indicate, you can use the Count Inventory window, which will help you quickly update the quantities of many items at once. (Counting inventory items)
• If an item's actual inventory quantity is different than your AccountEdge records indicate, but the value of your inventory asset account is correct in AccountEdge, you should enter an inventoried adjustment that changes the item's quantity and unit cost in AccountEdge. (Adjusting item quantities and unit costs)
• If an item's actual inventory quantity matches your AccountEdge records but the value of your inventory asset account and the item's total value are incorrect, you should enter an inventoried adjustment that changes the balance of the inventory asset account, the item's total value and unit cost. (Adjusting item total values and unit costs)
• If an item's actual inventory quantity matches your AccountEdge records and the value of your inventory asset account is correct in AccountEdge, but the unit cost of an item is incorrect, you should enter an inventoried adjustment that changes the item's total value and unit cost. (Adjusting item total values and unit costs)

Warning: Typical inventory adjustments affect total inventory values

Keep in mind that when you make a typical inventory adjustment like this one, you will affect the item's total inventory value. The total inventory value is calculated by multiplying the total quantity of the item by the item's average unit cost; therefore, when you adjust the quantity, you also adjust the total inventory value of the item.

• Entering information in the Adjust Inventory window

• Counting inventory items

• Adjusting item quantities and unit costs

• Adjusting item total values and unit costs

• Finding, changing, deleting and reversing inventory adjustments