USA Inventory Adjustment Journal Back to Asset Acct?

[JT1002]

Hello,

mom working over the holiday to try and satisfy my boss who does not wants an inventory adjustment account as COGS or as an expense. We are a manufacturing start up and use raw materials to produce finished goods. He believes that RM is not an expense or COGS until it is sold. Thereby ignoring the cost of production for inventory on the books? He wants me to journal entry the RM costs from Inventory Adjustment acct, back into RM asset account. At the same time he wants to see the RM asset account going down! I can’t offset in QBO by making FG Asset acct as the Inventory Adj Acct. it will zero out the cost of RM but won’t change the inventory quantities! Any help is appreciated. I am not seeing a way around having an Expense or COGS account below the Sales COGS on the P&L.

 

[kirby]

Would it help to have a training session with him and go over the basics of accounting for inventory adjustments?

 

[JT1002]

Would it help to have a training session with him and go over the basics of accounting for inventory adjustments?

Hi Kirby, I’ve done that but he still doesn’t see how the adjustments make sense on the income statement in the Inventory Adjustment account

 

[JT1002]

Hi Kirby, I’ve done that but he still doesn’t see how the adjustments make sense on the income statement in the Inventory Adjustment account

Do you understand what the issue is I’m writing about? I know it’s probably difficult unless someone has had the same problem? I could upload the info if that’s more helpful?

 

[JT1002]

Do you understand what the issue is I’m writing about? I know it’s probably difficult unless someone has had the same problem? I could upload the info if that’s more helpful?

And I very much appreciate the reply! Any help is needed. He has another account rant looking at my books now because he doesn’t trust the numbers.