If you don’t need the historical data to be correct and your goal is to ensure accurate inventory levels going forward without a large shrinkage expense, adjusting historical documents might seem like a solution. However, it’s important to understand the potential impacts on your financial records.
Steps to Solve:
Adjust Historical Documents (with caution):
- You can reduce quantities in historical receiving documents for each product with shrinkage. This approach can help avoid a large inventory shrinkage expense but can alter historical financial data.
Document Changes:
- Keep a detailed record of all changes made to historical documents. This documentation is crucial for audit trails and future reference.
Set a Starting Point:
- After making the necessary adjustments, choose a specific date as your starting point for accurate inventory levels. Ensure that all future inventory tracking is precise from this point onward.
Consult with an Accountant:
- It’s always advisable to consult with your accountant before making such changes to ensure compliance with accounting principles and to understand the full implications.
Additional Advice: For ongoing accurate inventory management, consider using a third-party app like Warehouse 15, which offers advanced tracking and management capabilities.
Why Warehouse 15:
- Advanced Tracking: Manages physical inventory across multiple locations.
- Mobile Support: Allows front-line workers to manage inventory with Android devices.
- Barcode/RFID: Supports barcode/RFID scanning for accurate tracking.
For more details, you can check out the Cleverence Warehouse 15 solution.
Hope this helps!
