Inventory Opening Balances

Inventory Opening Balances are entered typically when you are setting up a new company data file and need to enter existing balances and stock quantities for your inventory.  This can be opened from System menu > Opening Balances > click on Inventory Opening Balance button.  

Note that:

You must make sure all your Inventory items have already been entered into the Inventory form before you can make any adjustments or opening balances and quantities for them.

The warehouse should also have been setup prior to entering any opening balances.  You need at least one warehouse setup and if you normally do not use warehouses then make the default the location of where your company is or where your inventory is stored.  VisionCore creates a default warehouse called "MAIN" that you can use or change.  Then, enter the add quantity and the unit cost.

If you are setting up opening balances for your inventory in Inventory Adjustment form, you should NOT enter an Inventory and  Cost of Sales chart of accounts opening balance otherwise your numbers will double because it builds that number for you.

The following steps will explain in detail how to add a new Inventory Opening Balance.

1.        From the Main Menu, click on System Manager, then Opening Balances.  You will now be brought to the Opening Balances form.  Here, click the Inventory Adjustments button.  This will open the Find Inventory Opening Balance form.  Click the New button at the upper left corner of the form to bring you to a cleared inventory adjustment form where you may enter your inventory opening balances.

2.        The Adjustment ID will be automatically filled in with a unique number based on the starting number that is assigned in the Starting Numbers form.  This number is used as a reference for you and VisionCore to help find this transaction later if necessary.  It cannot be changed on this form but you can change the numbering sequence in the Starting Numbers form.

3.        You can also enter a Job ID for tracking the journal entry to a Job.

4.        Enter the Date of the transaction.  You may use the little calendar button to open the miniature calendar to graphically enter a date.  When you have finished entering data for each field, press the TAB or ENTER key to move your cursor to the next field.  The date will default to today's date.

5.        Since this is an Inventory Opening Balance transaction, Adjustment Type field will default to Adjustment.

6.        The Notes field can be used to enter a detailed description of why you are making an inventory adjustment.  You can enter Opening Balance on this field since you are creating an opening balances for your inventory items.

7.        Next enter the Item No you want to use by selecting it from the combo box.

8.        The Description field will automatically fill in with the inventory items description, which you can change it if you want.

9.        The Warehouse ID field will also automatically fill in based on the default warehouse setup in the Company Preferences form.  You can change this to any warehouse you choose.  The selected warehouse will be where the quantity will get updated.

10.        The Current Stock will display the current quantity in stock for the selected warehouse and cannot be edited.  Since this is an opening transaction, this will display a zero quantity.

11.        Enter the initial balances or stock quantities for your inventory item in the New Quantity field. If you have 27 in stock of a particular item then enter 27 in the New Quantity field.  This will automatically show "27" in the Quantity Difference field.  When you post this transaction your total quantity in stock for that particular item will be 27.

12.        The Inventory Account ID fields will automatically be filled in with the Inventory Account ID setup for the selected inventory item.  You can change this but normally it is an Inventory Asset account.

13.        The COGS Account ID fields will automatically be filled in with the Cost of Sales ID setup for the selected inventory item.  You can change this but normally it is an Cost of Sales account.

14.        The Cost Each field will automatically fill in with the selected inventory items Cost setup.  You can override the cost and enter a different cost if you choose.  For an opening balance enter your unit cost here.

15.        The Total Cost field will be the Cost Each multiplied by the New Quantity.  For example, if you enter a new Stock of 25, the new Stock (25) gets multiplied by the Cost Each.

16.        You can enter as many inventory items in the Line Item Detail area as you need to adjust.  At the bottom of the form you will notice the Total field will sum all the Total Costs up as you enter them.

17.        You can click the Recap button to display a preview form of what will be entered in your General Ledger when you post the inventory adjustment.

When you are finished entering all the inventory detail for the opening balances, you should then Post the transaction to enter all the detail into the General Ledger and update your inventory stock.  If you open the inventory form and search for the inventory item you entered an opening balance for, you will notice that the inventory stock has changed to reflect the new total.