Net Worth (Balance Sheet) inventory errors
Net Worth (Balance Sheet) Inventory Errors
Cashbook Platinum
'Balance Sheet' and 'Net Worth' can be used interchangeably. Reference is only made to 'Net Worth' below
The Net Worth report summarises the assets and liabilities of a business entity. It is a snapshot of a business's financial position at a point in time.
Inventory is reported as a current Asset on a business's Net Worth Report. Inventory consists of stock eg. cattle, sheep, unsold wool or grain, that a business owns but has not sold.
The Net Worth report is located by clicking on:
- Reports
- Management Financials menu option
- Net Worth
When looking at the Net Worth report the user may recognise that the inventory values for a particular enterprise is incorrect. To correct this go back to the Advanced Trading Accounts to find the discrepancy, this is where the inventory figures are generated from. The inventory valuation amount for a particular enterprise eg. Cattle Trading - Livestock (CATR) in the Net Worth report is the same amount as the Closing Stock ($) amount in the Advanced Trading Accounts.
For Example: It is suspected that there is a discrepancy in CATR Cattle Trading - Livestock enterprise.
Step 1: Advanced Trading Accounts
- Click Setup
- Advanced Trading Accounts menu option or Transactions > Advanced Trading Accounts
Step 2: Enterprise
- Select the appropriate Enterprise Type, eg. Livestock
- Select the appropriate Enterprise, eg Cattle Trading
Step 3: Enterprise Class Summary
- Click on Enterprise Class Summary. This report shows a summary of trading quantities e.g. Purchases, Natural Increase, Losses, Sales, and total values e.g. Closing $/hd by livestock class or crop ID. See below
This report is an excellent management tool for easily identifying any discrepancies both stock numbers or value within each enterprise eg. Cattle Trading and its Classification Groups eg. Weaner Heifers - Make any required changes to fix the data
Article ID CBP1210