Inventory adjustment account

Dynamics 365 Business Central/NAV User Forum
#1

Hi Experts,

Could u explain the use of inventory adjustment account.I am getting little bit consfuse of this account.

Could u elaborate this issue.At what type of transactions will it update this account.

please throw some light…

thanks and regards

#2

This account is updated with the value of stock adjustments (negative / postive) from Item Journals.

Only update if specified in Posting Setup.

#3

Thank u very much,

“Only update if specified in Posting Setup.” What is this sentence meaning?

If we use transfer orders which accounts will update? Please provide solution. I am leaner.

thanks and regards

#4

The best way to learn is to do it, load a transfer order and ship it and then look at the associated GL entries, then receive it in and look again.

What you will see is the system moving it out of the inventory asset account of the item at the origin location and moving it into the intransit version, they balancing side of these is the inventory adjustment accounts. Then the receipt does the same taking it out of inventory in intransit and into the asset account of the new location. If you do not differ the inventory asset by location then this will balance to zero on the transaction, as will the adjustment account.

#5

I srtongly recommend that you install a copy of the demonstration database,CRONUS. and strat to investigate how Navision works.

I particulraly recommend that you:

1 - Create and Ship and Invoice a Purchase Order.

2 - Create and ship and invoice a Sales Order.

3 - Create and post some items journal lines for positive and negative adjustments.

4 - Create and Ship and Receive a Transfer Order.

5 - Post Inventory Costs to G/L.

Remembering to use a unique document number for each transaction.

6 - Use Navigate to find and plot on a spreadsheet all of the individual postings to the different ledgers that have been created.

USe F1, Help to start to understand all of the processes.