How to Post Physical Inventory Differences into Accounting in iDempiere

Posting physical inventory differences into accounting in iDempiere happens automatically as part of the Physical Inventory process, provided the correct configuration is in place. There is no separate “post difference” action — the accounting impact is generated when the inventory count is processed and completed.

Inventory Differences

During a physical inventory count, iDempiere compares:

• Book Quantity (system stock)
• Counted Quantity (physical stock)

If there is a difference between these two values, iDempiere calculates an inventory variance. This variance represents either:

• Extra stock found (inventory gain), or
• Missing stock (inventory loss)

At this stage, the difference is only calculated — no accounting entry is posted yet.

Inventory Difference Accounts

Before accounting entries can be created, iDempiere needs to know where inventory differences should be posted. This is controlled through:

• Product Accounting (Inventory Asset account)
• Inventory Type / Charge selected on the count line
• Accounting Schema configuration

When an Inventory Type or Charge is used (for example: Inventory Loss, Damage, Shrinkage), iDempiere uses the expense or adjustment account defined for that charge.

This setup ensures inventory differences are posted consistently and auditable.

Post Inventory Adjustments

When the Physical Inventory document is processed:

1. iDempiere creates internal inventory adjustment transactions.
2. Stock quantities are updated at the locator level.
3. Accounting facts are generated automatically.

For each difference:

• Inventory Asset account is credited or debited
• Inventory Adjustment / Expense account is debited or credited

The posting follows the active Accounting Schema and respects product costing rules (Standard, Average, FIFO, etc.).

There is no manual journal entry required.

In iDempiere, physical inventory differences are posted into accounting automatically when the Physical Inventory document is processed. The system calculates the variance, applies product costing rules, and posts the financial impact using predefined inventory and adjustment accounts. This ensures inventory accuracy, financial correctness, and full audit traceability — without manual journal entries.