Set starting balances for inventory items

Starting balances for inventory exist only if you are transferring 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. (Other items can be added as they come in.)

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

When you initially enter inventory items, amounts in the Qty, Average cost, and Total cost columns of the Inventory Items tab will all be zero. This would have been correct if you had been starting a brand new business. New businesses all start with quantities and costs at zero.

But when you must enter starting balances, go to the Settings tab and click Starting Balances:

General procedures for entering starting balances are found in this Guide. More specific procedures for inventory items are given below.

When the Starting Balances list appears, click on the blue balance figure for the Inventory on hand account under the Debit column. The balance should be zero until you have entered your starting balances:

Click Edit for an inventory item and enter the starting quantity and average purchase cost per unit.

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 (if inventory locations are being used), quantities at each location, and average cost from the prior accounting system:

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:

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