Ambrook makes it easy to record changes in your inventory that are not related to a financial transaction. Some common examples include:
Inventory usage
Shrinkage e.g. perishable inventory going bad
Animal death loss
Production of raised inventory
You can record an inventory quantity in two ways:
From the Ledger by go to the +New button then selecting Inventory Change
From the Items page, click the three dots next to your inventory update and select Update Quantity
On the Inventory Update details you will enter a few pieces of information:
Direction - Was this inventory additions or removals
Reason - detail about why an inventory change was recorded
Quantity- the amount of inventory you gained or lost
Tags - how your inventory change will show up on your accrual basis books
Quantity Update Accounting
When you record an Inventory update, there are three important things to keep in mind:
Inventory asset - the item variant you select determine which inventory account on your balance sheet will change
Value - for inventory additions the unit price you enter, multiplied by the quantity, will give you a total value for the inventory update. This value is the amount by which your balance sheet will change, and also the amount that will appear on your profit & loss
Category - this is the expense or income account which will correspond to the value by which your inventory asset changes.
For inventory additions:
Ambrook uniquely let's you enter a value for each individual inventory update. Practically, this means you can do things like enter the market value for each harvest of crops
Importantly, the value you enter for a batch of inventory becomes it's cost basis - meaning that it determines the amount of expense you incur when inventory gets used.
For inventory removals:
You can only edit the quantity -the value of the removed inventory is pre-determined by the system, based on the value used when inventory was added.
This applies to inventory entered via manual quantity updates or via bills.