Hi Eva

There's a difference between theory and practice. In theory, the inventory account always reconciles to the IC Item Valuation report. In practice that GL account is the hardest account to reconcile. Your approach, posting extraneous entries to that account, almost guarantees that it will be impossible to reconcile.

If you can live with that, and you can live with the idea of having to make TWO adjustments for every improvement, then your idea will work.

My question is - why do you need to use the GL to track this information, why not just do it straight in inventory?

Steve