Steps for Posting Inventory to Accounting

This article takes you through the steps to post your inventory adjustments to accounting and offers some troubleshooting help. For more context and best practices around posting, please read Best Practices for Posting Inventory to Accounting

Article Contents 

• Mapping Your Inventory Accounts
• Posting to Accounting
• Why can’t I post an inventory adjustment to accounting?

Mapping Your Inventory Accounts

Before you can post your inventory to accounting in MarginEdge, you’ll have to map your inventory accounts, so we know which accounts to post inventory adjustments to in your accounting system.

Go to Accounting > Categories. On this screen, you will see your categories in MarginEdge and how they are mapped to your chart of accounts. In the very last column, you will see a “Inventory Account". If you double click this field, a drop-down menu will appear, allowing you to select the inventory account corresponding with the correct Accounting System account.

You will not be able to export your inventory adjustment if the categories are not mapped. You can find more information here about mapping errors. 
 

Ready to Post!

To post an Inventory Adjustment to accounting, go Inventory > Inventory Summary and select the Starting Inventory and Ending Inventory.

• We are not posting inventories but inventory adjustments to your accounting system, so you need to have TWO inventories in MarginEdge to post an adjustment
• Only adjustments between end-of-period inventories can be posted to accounting (unless you have requested a change in settings for your unit)

Because we use the ending inventory of the previous period as the starting inventory value of the current period, the dates of the starting inventory as seen on this screen will be one day after the date that/those inventory dates were counted. (so in the example pictured below, this restaurant took their inventory on the last day of their previous period [8/2] but it appears with the next day[8/3] as it is acting for these purposes as the starting inventory value of their next period).

Once you have selected a starting inventory and ending inventory, you can post the adjustment by pressing the "Post to Accounting" button.  This will create the journal entry and make it available for export on the Accounting > Export screen alongside invoices and sales entries. 

Don't forget that once an inventory is posted, it cannot be edited in MarginEdge. 

Export Settings

Your inventory entries can be set to export manually, or automatically by going to the Setup > Integrations page and clicking on "Edit Configurations" next to the name of your accounting system. 

Once here, you can set choose your desired settings. Remember, you always control when to actually post it from the Inventory Summary page; this accounting setting controls whether the actual export to your accounting system is automatic or manual each time. 

If you are using Classes for your Inventories, you can set those here as well. 
 

Why can’t I post an inventory adjustment to accounting?

To post an Inventory Adjustment to accounting, the following criteria must be met:

• There are two closed inventories selected
• Inventories must be end of period (unless you have requested a change in settings for your unit)
• All applicable inventory categories are mapped correctly (see below for more details)

When you post inventory to accounting in MarginEdge, we do not post the full value of your inventory. What we post is an inventory adjustment entry, which is a journal entry that records the difference between the cost of your last posted inventory and the cost of your current inventory.

Incomplete Mappings 

If you are missing mappings, it will generate an error when you click to Post. A box will pop up prompting you to select the correct account in order to proceed with sending the Inventory Adjustment to the Accounting > Export screen

If you have two or more categories with the same Accounting System Account, those cannot have different Inventory Accounts mapped. An error will pop up and you will need to fix the categories in order to proceed.

How can I post inventory weekly? 

The default settings in MarginEdge only allow end end-of-period inventories to be posted. Under this configuration, you can still take spot inventories for tracking key items over the short term, but cannot post them.

However, if you want to be able to post inventory weekly, please reach out to help@marginedge.com so we can adjust your settings. Once enabled, the postings must be 7 days apart each time. And if you are part-of a multi-unit company, this will apply to all locations in your company.