This article is Step 4D of Understanding Accounting Integration - Control Accounts > Inventory Adjustments  

To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration

Step 4D - Inventory Adjustments

This General Ledger Account that is used as the default in the Inventory Adjustment field will offset any adjustments entries made to the value of your inventory and this General Ledger Account Type would typically be set up as a Cost of Goods Sold account

If you do an Inventory Adjustment in Blackpurl on a Part Record and/or Unit Record, depending on whether it is an increase or decrease adjustment, the journals are similar to the following

  • When Inventory Levels or Costs are increased in Blackpurl due to an Inventory Adjustment then the journal would be similar to:

Debit - Inventory General Ledger 

Credit - Inventory Adjustment General Ledger

  • When Inventory levels or costs are decreased in Blackpurl due to an Inventory Adjustment than the journal would be similar to:

Debit - Inventory Adjustment General Ledger 

Credit - Inventory General Ledger 

In our example below we are processing an Inventory Adjustment for an increase in stock against at Part Record 

The above example would come over to your accounting package as a journal entry to increase the amount of  inventory with an offset to your Inventory Adjustment General Ledger:  

You can have as many adjustment accounts as you wish and they can be set up as Adjustment Categories ie Parts Adjustment, Unit Adjustment, rebate clearing etc 

They would give you the option of selecting what Adjustment General Ledger you want to use when increasing or decreasing inventory values.