How to make adjustments to Materials/Inventory

At year-end, it is sometimes necessary to make adjustments to the Materials Expense, and the Inventory Asset. You may have back-posted these entries in your accounting system to a month that has already been loaded into RealTime CEO.  Follow the steps below to make these adjustments to the same month in RealTime CEO, without reloading data:

1. From the menu, select the Enter Data screen.
2. Click the Adjust button under Prior Period Adjustments.
3. In the Adjustment Type, select Inventory.
4. Select the Month to adjust.
5. Enter the Materials Amount (this is entered as an adjustment to what is already posted, so to increase Materials by $1000, enter 1000).
6. Select the Post to account from the displayed accounts, or enter part of the account name to find it.  Only accounts tagged as Materials will display here.
7. Click Apply.

The following explains the results shown on the Monthly Data screen of a positive adjustment entered:

• The Materials account selected will be increased
• Total Direct Costs will be increased
• Net Profit will be decreased
• The Inventory Asset will be decreased
• Total Assets will be decreased
• Retained Earnings will be decreased