Before you can start selling inventory items, you need to record your initial stock or inventory opening balance. This is because when you add your products in the products and services area, you are only specifying what items you sell, but not how many of those items you have in stock.
Recording inventory opening balances
To record an inventory opening balance,
Recording opening balances
- On the main menu, click on Inventory and then Inventory Entries.
- In the Entries list, let’s click on the (+) Button and then Opening Balance from the context menu.
- In the header section, choose the Warehouse, Price List, Date, Status, and the Employee recording the transaction.
- Continue to the Content Tab below.
In the Content’s Tab, we add all our inventory items.
- Choose the item and set the initial counted quantity.
- To add new items, click on the (+ Item) Button below the list and Repeat Step 1.
- To remove an item from the list, click on the trash can icon on the right.
- Type a description of this entry if necessary.
- Once our entry is completed, we click Save.
When recording an inventory item’s opening balance we use the Counted field instead of the variation field, as we are specifying our initial stock.
Note: Inventory opening balance entries are posted to the Opening balances ledger account in the journal.