Inventory Accounting Entries

Acctivate creates entries each time you purchase, receive, adjust quantity, sell or process landed cost for inventoried items. Here are some example journal entries created by Acctivate followed by an overview of transactions.

Account DR CR
Inventory Asset $750
Accrued Purchase Receipts $750
Inventory Receipt of goods, with or without a Purchase Order


Inventory Adjustment $50
Inventory Asset $50
Inventory Adjustment for inventory that was broken in the warehouse


Inventory Asset – TO Warehouse $50
Inventory Asset – FROM Warehouse $50
Inventory Transfer for inventory moving between warehouses


Inventory Asset – Finished Good Warehouse $50
Inventory Asset – Raw Material Warehouse $45
Non-inventoried Cost Offset Account – Labor Warehouse $5
Inventory Assembly to build a finished good out of raw materials, including Labor


Gain/Loss on Inventory $250
Inventory Asset $250
Gain or Loss on Inventory due to an Inventory Balance Adjustment


Accrued Purchase Receipts $750
Expense Account(s) for Other Amounts $50
Accounts Payable $800
Vendor Purchase Invoice (Vendor Bill) for Inventory and Other Amounts


Accounts Receivable $150
Sales – Widgets $100
Sales – Gadgets $50
Customer Sales Invoice for Products and/or Services


Cost of Goods Sold – Widgets $50
Cost of Goods Sold – Gadgets $25
Inventory Asset $75
Cost of Goods Sold (COGS) from Sales Invoice above


Inventory Asset $150
Accrued Landed Cost $150
Landed Cost allocation for Inventory Receipts, Transfers, Assemblies, etc


Accrued Landed Cost $150
Accounts Payable $150
Landed Cost Purchase Invoice (Vendor Bill) from the vendor for freight charges from previous transaction.

Sales Invoice

DS Wizard Chart

Inventory Transactions Chart

Posted in Accounting, Inventory, QuickBooks and Sync - Last modified on May 21, 2019
Still need help?
Search all content on this site, contact support at 817-870-1311, or create a support ticket.