Inventory transfers are useful for tracking the creation of finished goods from components items. With inventory transfers, the value of the finished goods must be equal to the value of the component items.
Inventory adjustments are used to track shrinkage, items sold without an AccountEdge invoice or purchased without an AccountEdge purchase order. They also can be used to fix errors that require you to adjust item quantities without changing the items' overall value, or adjust the items' overall value without changing the item quantities. When you make these kinds of changes, your items' unit costs are adjusted, along with the balance of your Inventory asset account.
For more information about these transaction types, see Transferring inventory and Adjusting inventory.
This tip applies to: