Inbound and Outbound Inventory Movements are used to record the following:
- To record opening balances. A Type of Non-Accounting is typically used.
- To fix stock levels after cycle counts. A Type of Accounting is typically used.
- To fix stock levels after an inventory reconciliation to the general ledger.
- To update inventory balances for a customer return. A Type of Accounting is typically used.
- Warehouse Transfers. A Type of Non-Accounting is used.
An Inbound Inventory Movement will increase the quantity availably on the inventory balance.
An Outbound Inventory Movement will decrease the quantity availably on the inventory balance.
Accounting Entries by Movement Type
Inventory movements with a type of Non-Accounting and Transfer do not book an entry into the general ledger. These types of movements only affect the inventory balance.
Debit GL Account
- Defaults to the inventory GL account listed on the product unless specifically overwritten in this screen for an inbound inventory movement.
- This field must be specifically set in this screen for the outbound inventory movement.
Credit GL Account
- Defaults to the inventory GL account listed on the product unless specifically overwritten in this screen for an outbound inventory movement.
- This field must be specifically set in this screen for the inbound inventory movement.
Reconciling Physical Product Counts to Inventory Balances (Cycle Counts)
Accounting Seed is a perpetual inventory system. This means that there is no need for a physical inventory of your warehouse to update your accounting records. It is wise to periodically audit your physical inventory balances and compare them to actual inventory balances recorded in Accounting Seed to ensure product has not been damages, stolen or incorrectly processed.
Cycle count adjustments are processed as inbound or outbound inventory movements on the appropriate inventory balance. Users may want to note the adjustment with a cycle count date. An inventory balance report can easily be exported to excel to create cycle count sheets.On the case object, add lookups to the objects listed below. This will allow you associate a case to a specific installed asset, or sales order inventory movement.
- To adjust an inventory balance up use the Inbound Inventory Movements object.
- To adjust an inventory balance down use the Outbound Inventory Movements object.
Processing Extended Returns to a manufacturer (RMAs)
Please see the Customer Returns knowledge article before reading this article. This article is used to help organizations extend customer returns when the product needing to be returned has to be shipped back to an original equipment manufacturer. An extended return such as this is called a Return Merchandise Authorization (RMA). Accounting Seed recommends using the Salesforce case object to tie together transactions that relate to an RMA. Furthermore, statuses and comments related to the case should be added to match your specific RMA process.
Accounting Seed recommends the following relationships are made in your Salesforce instance to the case object to process the RMA effectively:
- Sales Order Inventory Movement
On the following objects, add lookups to the case. This will allow you to associate multiple transactions that may need to take place to close the product return.
- Inbound Inventory Movement
- Outbound Inventory Movement
- Purchase Order
- Sales order
With these additional relationships to the case object a user can record multiple inventory movements as needed to match the status of the physical device.
See a specific example in our training guide.