Starting balances for inventory exist only if you are migrating an existing business to Manager from another accounting system. In that case, you need to set starting balances for inventory items already in stock, including both quantities and average costs. Your starting balances in Manager will be your closing balances from your previous accounting system.
Set a start date
Starting balances cannot be entered unless a start date is set. To set a start date, following procedures in this Guide.
Create inventory items
All inventory items on hand on your start date must first be created in the Inventory Items tab. Follow procedures in this Guide.
Example
Brilliant Industries has six different inventory items in stock on the day it begins using Manager. It sets a start date and defines those six items:
Enter starting balances
General procedures for entering starting balances are found in this Guide. More specific procedures for inventory items are given below.
In the Inventory Items tab, click Edit next to an item with a starting balance on your start date. Enter the starting quantity and average purchase cost per unit:
If you have more than one inventory location defined, the default location will be Unspecified location:
Other locations can be selected from the dropdown menu. And additional locations can be added:
The same average cost must be used for all inventory locations.
Example
Brilliant Industries had 10 of its lamp kits on hand on the start date. So it clicks that item’s Edit button:
It enters the starting locations, quantities at each location, and average cost from the prior accounting system:
Notes
Starting balances should match the physical count on the start date. If unpaid sales or purchase invoices issued prior to the start date are entered to establish starting balances in Accounts receivable or Accounts payable, do not adjust the inventory item starting balance quantities for items on unpaid sales or purchase invoices. Manager ignores inventory item quantities on starting balance invoices, only using price information.
If you have many inventory items with starting balances, you can use the Batch Update function in the bottom-right corner of the Inventory Items tab, as described in another Guide:
