The Merchandise Inventory Report values merchandise based on the setup of the Grain Ledger Account. The inventory value can be calculated from the current inventory or a percentage of the cost of sales. Do not run Post Inventory to GL if using the Merchandise Inventory Report to value the merchandise inventory. Also, if an inventory adjustment is created in Accounting; do not make an entry in the general ledger.
When the Merchandise Inventory Report is posted, journal entries are made to the purchase and inventory accounts that are established on the grain ledger accounts. These entries are reversed out next month (the program automatically creates future journal entries). The beginning of month balance on the asset account should always be the beginning of year balance.
Merchandise Inventory Section
Values/Units/Amounts can be found on the Merchandise tab at Setup / Grain Ledger Accounts.
Beg of Year
- Units – Beginning of Year Units on the Grain Ledger Account
- Value – Beginning of Year Value on the Grain Ledger Account
Purchases
- Units – YTD quantity total for the Purchases account set up on the Grain Ledger Account
- 1Value – YTD amount for the Purchases account set up on the Grain Ledger Account
Current Inv
- Actual Units – Current Period Units on the Grain Ledger Account
- Value – Current Period Value on the Grain Ledger Account. If the Current Period Value is blank, it is calculated as follows:
Beginning of Year Value + Purchases Value1 - Cost of Sales Amount2
Cost of Sales
- % – Cost of Sales % on the Grain Ledger Account
- 2Amount – Beginning of Year Value + Purchases Value1 - Current Inventory Value
Note: If Current Inventory Value is blank, it is calculated as follows:
Sales Value3 * Cost of Sales Percent
Sales
- Units – YTD quantity total for the Sales account set up on the Grain Ledger Account
- 3Value – YTD amount for the Sales account set up on the Grain Ledger Account
GL Adjusting Entries
- Cost of Sales Adjustment – A debit to the Purchases account set up on the Grain Ledger Account.
Cost of Sales Amount - Purchases Value - Cost Adj – A credit to the Inventory account set up on the Grain Ledger Account.
Cost of Sales Amount - Purchases Value
