Inventory Accrual Report

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The Inventory Accrual Report is accessed through the Reports Window, Inventory folder.  Accrued Inventory is merchandise received into Inventory but has not yet paid to the Vendor.  This report displays Inventory Stock Items that meet this condition grouped by the Showroom/Warehouse.


invent accrual report window


The Inventory Accrual Report displays pertinent information of the Inventory Stock Item including the Stock Number, Sales Category Code, Description, Style / Size, Color / Finish, Vendor Code, Storage Location, and Manufacturer's Catalog Number.  Following such information are the current and accrued quantities and costs:


On Hand Quantity:  The number of units of the Inventory Stock Item currently residing in the Showroom/Warehouse.
Paid For Quantity:  The number of units of the Inventory Stock Item in the Showroom/Warehouse for which Vendor Invoices have been recorded.
Accrued Quantity:  The On Hand Quantity less the Paid For Quantity.  The Accrued Quantity represents the number of units that are in the Showroom/Warehouse but have not yet been paid to the Vendor.
Estimated Cost of the On Hand:  The product of the On Hand Quantity and the Estimated Unit Cost from the Inventory Stock Item Window - Stock Item Tab.
Cost of Paid For:  The total cost of the Inventory Stock Item within the Showroom/Warehouse.
Accrued Cost:  The difference between the Estimated Cost of the On Hand and the Cost of Paid For.


The report can be printed retroactively as of certain month by adjusting the Fiscal Cut-Off selection appropriately.  Ranges for Stock Number, Style / Size, Color / Finish, and Vendor, Sales Category, and Warehouse Codes are available to narrow the scope of the report.  The Stock Inventory Items can be sorted by Stock Number, Style / Size, Color / Finish, Vendor, Storage Location, and Sales Category within the Showroom/Warehouse as determined by the Sort By selection.  The full description of the Stock Inventory Item can also be optionally displayed.  To remove a Stock Inventory Item from this report, an Inventory Adjustment can be created to reconcile the On Hand and Paid For Quantities.


Calculating accrued Inventory is a valuable tool in assessing a more accurate value of the company Inventory, particularly for insurance purposes.  The accrued Inventory amount represents merchandise stored by the company which should, therefore, be covered by insurance.  Further, an auto-reversing Journal Entry can be created to debit an Accrued Inventory Account while crediting a Future Inventory Purchases Liability Account.