How Inventory Balances Work
 
Accounting Seed inventory consists of an inventory balance object and 5 types of inventory movements. 
 
Inventory balances track the quantities of available products in inventory. An inventory balance is made up of the following three data elements: Warehouse, Location and Product. A quantity available for each combination of warehouse, location and product is visible at anytime in Accounting Seed. Users may elect to run reports to consolidate inventory balances by one or more of the variables. Inventory balances are automatically created when you receive products on a purchase order. The only time an inventory balance would ever need to be created manually is in the initial loading of inventory opening balances.
 
Inventory Movements Overview
There are 5 types of Inventory Movements that can be related to an inventory balance. Each movement is described separately below in terms of its purpose and its impact on the General Ledger transactions table. Please see the Debits and Credits knowledge article for details on the accounting transactions behind inventory movements. 
 
Sales Order
  • Sales Order Inventory Movements are outbound inventory movements specific to the allocation of sales order lines. Once a sales order line is allocated, a Sales Order Inventory Movement is inserted, which decreases the quantity available. 
  • Impact on General Ledger
    • None

Manufacturing

  • Manufacturing Inventory Movements are outbound inventory movements specific to the allocation of material lines on manufacturing work orders. Once a material line is allocated in the material line, a Manufacturing Inventory Movement is inserted, which decreases the quantity available.
  • Impact on General Ledger
    • Decreases stock inventory and increases work in process.

Inbound/Outbound

  • Inbound/Outbound Inventory Movements are used to record the following:
  • Impact on General Ledger
    • Non-Accounting type inventory movements have no impact on the general ledger. Accounting type movements will create Debits and Credits in the general ledger.

Purchase Order

  • Purchase Order Inventory Movements are used to record the receipt of inventory into stock. When a purchase order line is received, a Purchase Order Inventory Movement is created, which increases the available stock quantity. 
  • Impact on General Ledger
    • Increase stock inventory and liability for unreceived vendor invoice (Vouchers Payable)
 
 
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