When physical inventory is posted, what GL account does it post the adjusment amount to? Is there a way to edit the account? We have an account 5025 set up that we use all year for inventory adjustments and want to use the same account so we can keep tracking of total inventory losses or gains.

Hi Susan,

Posting a physical inventory hits the 'Adjustment write off' and 'Inventory control' accounts as assigned on the Control Account Set of the item, just like for Adjustment transactions. If you edit the Control Account Set, you can change the Adjustment Write Off account if you which.

As long as all Control Account Sets (if you have more than one) use the same Adj W/O account, then you can do what you require.

This sounds good. I will change the Adjust Write Off account to 5025 in the control account sets. We have another write off account 5430 that POA uses as some sort of in and out account. In POA Company Profile/Interface Posting Options it says that 5430 is used for "General Ledger Rounding Error Account". What does that mean?

I believe this has to do with occasions where due to 'rounding errors' and the sum of the details may differ from the total amount by a penny or two, a rounding G/L account is available to post to. This often heppens with MultiCurrency where exchange rate conversions are involved.

This would be similar to the rounding account one might see in A/R control account sets when multicurrency is enabled.

There may be a more clear answer that another may wish to provide.

Hi,

The rounding account in POA is used primarily for rounding the allocations of miscellaneous charges that do not divide out evenly between the line items, depending upon how you allocate the miscellaneous charges. It should normally be just pennies.

It is also used for rounding on Multicurrency, to make the debits and credits balance, again depending upon the allocation of the rate factor. And should be normally just pennies as well.

We have always suggested that this account be linked to Cost of Sales.

Regards,
Brian

Thanks for the info. The rounding account has not accumulated very much however since there are so many transactions in there I still like the idea of keeping our inventory adjustments in a separate account which is why we set up an account called 5025 Inventory Adjustments. With this understanding, I think I will go ahead and change the control account sets in Inventory to 5025.