Greetings everyone,
I'm new to the community and have been lurking for a bit on subjects that I'm unaware of. I decided to register and stick to the community.
Welcome!
Before my time, some of the books were a complete mess. We are slowly correcting a lot of bad accounting practices. There was a problem recently in our inventory adjustment account. Here is a little background.
We received "XXX" amount of parts for $22.20 in 2017 from multiple purchase orders. They were sold to the customer in Dec 2017. New purchase orders were made and price has increased. In early 2018, price increased to $22.40.
Now, the parts that were sold are now being returned due to being defective.
When I returned the parts, the item is being returned as $22.20 but it is using our inventory price of $22.40, which makes sense. Sage knows it is being returned at $22.20 but our inventory last received was $22.40. The difference is being put into our inventory adjustment account. We want to stay clear out of this account unless it is truly material.
We are using FIFO as well.
We want to tackle the problem before it gets out of hand.
Has anyone encountered this problem? Any help or direction would be appreciative.
Regards,
Zazu
