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Inventory

Closing Inventory is optional. 

Fields updated by the year end close are mainly used for reports and quantity summaries.  If you deem these field unimportant you do not have to close inventory.  Things to consider;

  • The Sales Quantity in the Item Inquiry or history window.This is reset to zero by the year end close process.

  • The Inventory Turnover Report.Without a year-end close the item beginning quantities for the year will be inaccurate.

If you use Average Perpetual to value your inventory.  The average cost is determined by all the receipts received. The year-end close will remove purchase receipts that have been completely sold.  The next receipt will then cause the average cost to be revalued with the receipts that remain.

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