How to post inventory differences?
Hello,
following situation:
According to the entries, the closing balance on the auxiliary materials account should be €15,000, but a closing balance of €17,000 was determined during the inventory.
Do I need to record the closing inventory of €17,000 as a SBK in the auxiliary materials account and simply record the difference additionally on the debit side? Or does the entire thing need to be posted again to the corresponding expense account?
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In this case, a higher final stock of auxiliary substances was found in the inventory than expected. This means that the inventory was worth €17,000, while the bookings provided a value of €15,000.
Normally, the actual final stock is recorded in accounting as this is the value confirmed by the inventory. Therefore, the higher amount of €17,000 should be entered as a final stock in the account.
The difference of €2,000 between the expected and the actual final stock must be corrected in accounting. This can be done in various ways, depending on the company’s booking practices. Here are two possible procedures:
1. Correction by an inventory correction posting:
– Record the actual final amount of €17,000 on the account of excipients.
– Book the difference of €2,000 as an inventory correction on a corresponding cost account (e.g. “Auxiliary differences”).
Two. Correction by rebooking to an expense account:
– Record the actual final amount of €17,000 on the account of excipients.
– Book the difference of 2,000€ directly to an outlay account used to capture inventory differences (e.g. “Constancy differences”).
The choice between these two methods depends on your company’s accounting policies and practices. It is recommended to consult with a accounting expert or a tax advisor to ensure that the booking is done correctly and in accordance with the applicable regulations.
I hope I could help you.