As outlined in the article Fix Inventory Without an Access Code, inventory adjustments are needed under multiple circumstances. Some of these corrections can cause unexpected results when comparing the Cost of Materials on the Job Cost Analysis report to the Debit column of your journal. One example is outlined below.
Step 1 - The cost of an inventory record is adjusted:
Step 2 - The Accounts Payable invoice is edited to offset the Cost of Materials adjustment just made:
Step 3 - Review Journal for the offsetting adjustment made when the payable was edited:
The first highlighted entry was created when the cost was changed in inventory. The second highlighted entry is the Accounts Payable invoice correction. This is done so the financial reports do not have an inaccurate amount posted for Cost of Materials.
Step 4 - While the steps above corrected the journal entries, the Job Cost Analysis will not reflect the changes made through Accounts Payable:
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