How to create Opening Entries for the Inventory with the Inventory Journal

This is what happens in the video

With the inventory opening, I will have to use the item journal, I’ll have to reset the G/L with my general journal, so first of all, let’s look at my items.

As you can see here, we already have the items in the system, the inventory is zero on all items.

And if I look into my chart of accounts, just to see where we are, I can see that we have no entries in here.

If I drill down into the entries, nothing is in here.

And I could also filter and I will do that on my entries.

My value being different from zero, which of course is for now, NO accounts, just to show you what is going on in here.

So first of all, we will go into the item journal, here we are and I will my inventory using a positive adjustment, a document number for opening for instance, I could enter here, open item or inventory or whatever I would like to call it, I enter my item number, my location code, the quantity I want to open and of course, I will create several lines on the same item if I have different location codes.

And be aware, that I cannot change my unit amount because I know this, in this case, my item is a standard cost item, I will get a validation result.

But on the other hand, if I have opened on another item, my bike for instance, on the same location, whatever quantity, I might be able to change the unit amount because this is a first in first out handled item, And so if it’s a first in first out, or FIFO item, you need to be aware to enter the unit amounts correctly.

And likewise, of course, if I use my snack bar item here, that I know is a lot-handled item, I also would need to enter my item tracking from my line item tracking line.

And I need here to set my, in this case, a lot number.

And whatever expiration date goes for this item, like this for instance, to make sure that everything goes correctly, now I could post this line and with those quantities.

And of course, I have cheated a little and created another journal with my inventory opening.

Just to show you here all the quantities, I would like to post, so this is my full inventory.

And I can post this when I’m ready to do that, like this.

And this will put all my item on inventory on the correct location, correct batch numbers etc.,

and we’re all happy here, but in the chart of accounts, as you can see here, it creates of course, a lot of adjustment on the inventory and it created here all the inventory accounts.

And I would like to open that with my opening balances as the very last thing so therefore, I will reset all those postings so I have to write them down, all of them, to see all the different figures and then to go into my general journal in here and if you’re doing this as an opening thing, you could in your live company, when you do a test, you could write down those numbers and then I think you should create an opening journal for inventory, so I’ve cheated already here, and made this ready, with all the correct amounts.

So I can just post them here.

Be aware of course, of the signs etc.

So when I post these quantities here, or these amounts in my opening journal, the chart of accounts go back to zero, so now I have chart of accounts, which is a reset ready for an opening balance.

And I have all my inventory filled in, on my item ledger entry correctly with lot numbers etc.