How Inventory Adjustments get posted to the journal.

Error:

Cause:

Solution:

How the inventory adjustments get posted to journal from the report.

Details:

The Material Cost is posted to the journal if the option is choosen at the time of closing.

To verify this amount that posted to inventory and cost of material account, print the Inventory Adjustment report for the month being closed. Go to Inventory, Reports and Inventory Adjustment Report.

The following entries are made depending on if the Material Cost total is a positive or negative amount on the Inventory Adjustment Report.

Negative Amount: Increases Inventory

Debit: Inventory

Credit: Cost of Materials

Postive Amount: Decreases Inventory

Credit: Inventory

Debit: Cost of Materials

Symptoms:How Inventory Adjustments get posted to the journal.