What are the Inventory Accounting Entries?

Acctivate creates entries each time you purchase, receive, adjust quantity, sell or process landed cost for inventoried items.

Acctivate creates entries each time you purchase, receive, adjust quantity, sell or process landed cost for inventoried items. Here are some example journal entries created by Acctivate followed by an overview of transactions.

Account DR CR
Inventory Asset $750  
Accrued Purchase Receipts   $750
Inventory Receipt of goods, with or without a Purchase Order

 

Inventory Adjustment $50  
Inventory Asset   $50
Inventory Adjustment for inventory that was broken in the warehouse

 

Inventory Asset - TO Warehouse $50  
Inventory Asset - FROM Warehouse   $50
Inventory Transfer for inventory moving between warehouses

 

Inventory Asset - Finished Good Warehouse $50  
Inventory Asset - Raw Material Warehouse   $45
Non-inventoried Cost Offset Account - Labor Warehouse   $5
Inventory Assembly to build a finished good out of raw materials, including Labor

 

Gain/Loss on Inventory $250  
Inventory Asset   $250
Gain or Loss on Inventory due to an Inventory Balance Adjustment

 

Accrued Purchase Receipts $750  
Expense Account(s) for Other Amounts $50  
Accounts Payable   $800
Vendor Purchase Invoice (Vendor Bill) for Inventory and Other Amounts

 

Accounts Receivable $150  
Sales - Widgets   $100
Sales - Gadgets   $50
Customer Sales Invoice for Products and/or Services

 

Cost of Goods Sold - Widgets $50  
Cost of Goods Sold - Gadgets $25  
Inventory Asset   $75
Cost of Goods Sold (COGS) from Sales Invoice above

 

Inventory Asset $150  
Accrued Landed Cost   $150
Landed Cost allocation for Inventory Receipts, Transfers, Assemblies, etc

 

Accrued Landed Cost $150  
Accounts Payable   $150
Landed Cost Purchase Invoice (Vendor Bill) from the vendor for freight charges from previous transaction.

 

Sales Invoice
DS Wizard Chart
Inventory Transactions Chart