Bulk Oil Overage Reconciliation.

[PartsManager]

I want to know how every one handles the bulk oil overage or shortages, but mostly overage.
Some one had suggested that at the end of the month if I have more oil on hand than what accounting says I have, I should create a credit memo invoice to the parts department for the difference so that the parts department gets the gross profit for it. I just dont know how to do this. If I create a parts counter credit invoice to the parts department as the customer,wont that say that I am putting that back into inventory,thereby creating a shortage ? I really need the specifics of how to do this. Thanks

[possum]

Positive or negative, adjust the accounting ledgers manually, so it's on the record correctly. Debit or credit your inventory acct (244 et al) and offset the adjustment from 688. The difference will go to/from Parts Gross. We use monthly reconciliations for our bulk oil inventories as well. Be careful of unposted invoices and adjust only when necessary, as it usually washes out the next month unless you have a pricing problem.