How do you customize and automate inventory adjustment journal entries in Pastel?

1 Why adjust inventory?

Inventory adjustment journal entries are necessary to ensure that your inventory records accurately reflect your physical stock. These adjustments affect your cost of sales, gross profit, and tax calculations. Common scenarios that require inventory adjustments include discrepancies between actual and recorded inventory levels, damaged, obsolete, or stolen items, a credit note from a supplier for defective or returned goods, and discounts or price changes applied to inventory items. Adjusting your inventory allows you to keep your records up-to-date and accurate.

2 How to customize inventory adjustment?

Pastel Accounting allows you to customize your inventory adjustment journal entries by creating different adjustment types and assigning them to different accounts. For instance, you could create an adjustment type for stock write-off and link it to an expense account, or an adjustment type for price change and link it to an income account. You can also specify whether the adjustment affects the quantity, the average cost, or both of your inventory items. To create a custom inventory adjustment type, go to Setup > Inventory > Adjustment Types and click on New. Enter a code and a description for the adjustment type, select the account that the adjustment will affect from the drop-down menu, choose whether the adjustment will change the quantity, the average cost, or both of the inventory items, then click on Save. If you need to edit or delete an existing adjustment type, simply select it from the list and click on Edit or Delete.

3 How to automate inventory adjustment?

Pastel Accounting allows you to automate your inventory adjustment journal entries by creating recurring batches. These are groups of transactions that you can schedule to run automatically at a specified frequency, such as daily, weekly, or monthly. For example, you can create a recurring batch for stock take adjustments and set it to run every month end. To create a recurring batch, go to Inventory > Recurring Batches, click on New, enter a code and description for the batch, select the adjustment type from the drop-down menu, choose the frequency and start/end dates for the batch, add each adjustment line with the item code, quantity and value, then click Save. You can also edit or delete existing batches by selecting them from the list and clicking Edit or Delete.

4 How to process inventory adjustment?

Once you have customized and automated your inventory adjustment journal entries, you can process them manually or automatically. To process them manually, you need to go to Inventory > Inventory Journals and select the adjustment type and the batch that you want to process. Then, you can review the details and click on Process.

To process them automatically, you need to go to Inventory > Recurring Batches and select the batch that you want to process. Then, you can click on Process Now or Process Later. If you choose Process Now, the batch will run immediately. If you choose Process Later, the batch will run at the next scheduled date and time.

5 How to view inventory adjustment?

After you have processed your inventory adjustment journal entries, you can view them in various reports and inquiries. For example, you can go to Inventory > Inventory Reports and select the Inventory Adjustments report to see a summary of all the adjustments made for a given period. You can also go to Inventory > Inventory Inquiry and select an inventory item to see its history and movements, including any adjustments.

By customizing and automating your inventory adjustment journal entries in Pastel, you can streamline your inventory management and ensure your accounting records are accurate and up to date.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?