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How do I account for lost product or change in value?
How do I account for lost product or change in value?

A guide to making balance adjustments for inventory in Ambrook

Eric Jasinski avatar
Written by Eric Jasinski
Updated yesterday

On Ambrook you can manage the dollar value of your inventory as a current inventory account. The value of these accounts need to be updated periodically based on inventory reconciliations, which you can do by creating a Balance Adjustment. To create a balance adjustment:

  1. Go to the Settings menu and select Balances

  2. Find the account you want to adjust and click on it to open the account details

  3. Select “Adjust Balance”

Balance adjustments are recorded as transactions which appear on the Ledger. Once a balance adjustment has been created, it should be tagged the same as any other income or expense transaction. Some common ways that inventory adjustments get tagged are as:

  • Inventory Shrinkage

  • Lost Product

  • Gain (loss) on change of value

Note - Balance adjustments are recorded to your books on both a cash and accrual basis. If you are using a cash basis filer, you should make sure that the category tag you use on your balance adjustment is not linked to a Schedule F to prevent incorrect totals for your Schedule F export

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