I have a query re inventory adjustments in Xero. I have asked Xero but apparently they are not allowed to answer this question!
When adding inventory that is untracked I understand I should code to purchases.
When adding tracked inventory I understand I should code to cost of goods sold.
Therefore are all adjustments to untracked inventory against purchases?
Are all adjustments against tracked inventory against cost of goods sold?
Any Xero gurus out there happy to help?
Please see following link:
Note at the bottom how to adjust tracked inventory.
Untracked inventory (ie you account for actual stock in hand outside of Xero). This is same as doing it traditionally where all stock purchased goes to purchases and at year end you do opening and closing stock adjustment.
Hope this helps.