The focus of this guide is on inventory control, which deals with inventory accuracy. Inventory value is covered in depth in the WIP Accounting Guide, which includes these inventory value guidelines:
Assign all PO lines a realistic supplier price
It is essential that all PO lines are assigned a realistic supplier price, which is translated into a unit cost that is applied to PO receipt transactions. The receipt cost updates the item’s inventory cost and is the cost basis for any subsequent job issue or sales picking transactions.
NOTE: Be aware that any discrepancy between the supplier invoice price entered in the PO Invoices screen and the associated receipt cost gets posted to Inventory Adjustments and makes no cost correction to past inventory transactions.
Receive finished items at a realistic cost
When finished items are received to inventory in the Job Receipts screen, always make sure the unit cost is realistic, meaning that it is within acceptable range to the estimated job cost and is not affected by an obvious costing error.
Never make journal entry adjustments to your Inventory account
Never make journal entry adjustments to your Inventory account. This is a self-adjusting account that is always fully reconciled with the total inventory value of stock on hand.
