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[Drew Kipfer]

We made an error and entered the wrong quantity when we received in some inventory last year. That item was then assembled into its case unit of measure this year. The system now shows we have 25 cases that never should have been entered into the system.

How do we correct this entry without creating an inventory adjustment that will impact the P&L?

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Drew Kipfer
EMP Technical Group
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[Jon Long]

Didn’t the error make an impact on the PnL in the first place? Regardless, I think you can just make an inventory adjustment, post it, then make a journal entry to zero it out if that’s what you want.

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Jon Long
Director of ArcherPoint-Upgrades
ArcherPoint Inc.
GA
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[Kim Dallefeld]

You are the second person in as many weeks who has asked this type on question (one was not on NAVUG Discussions.) Unfortunately, inventory is interfaced to the general ledger and thus all adjustments to inventory will affect the general ledger.  And if you inventory is being reconciled to the general ledger (using the Inventory to GL Reconcile report), you would want NAV to adjust inventory to remove the value of the 25 cases from this report.

However, since you received too much, what happened on the vendor side? Did you pay you vendor for 25 more than you should have? Does the vendor owe you a credit? Is the PO still open with 25 not invoiced? The answers to any of these could dictate your required solution.

If no vendor or PO corrections are needed, then an inventory adjustment is in order as Jon suggested. My question though is what would you debit and credit. If inventory subledger is balanced to the general ledger without monthly accounting entries, then you would want inventory in the balance sheet to be adjusted and then the decision is what to do with the other half of the entry.

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Kim Dallefeld, Kim@Dallefeld.com, Ft Worth, TX
Dallefeld Consulting, LLC
Member of Dynamics Consulting Group

New View Strategies, – training and consulting.

NAVUG All-Star
NAVUG Programming Committee
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[Drew Kipfer]

I figured out our mistake. Someone put in the wrong units per case in the Assembly Order. 

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Drew Kipfer
EMP Technical Group
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