I think it means that in 2003 inventory was 62k, which seems a correct or at least reasonable number if I understand you correctly. And in 2011 inventory as per 2003 seems to have grown to 343k. That can not be right: inventory does not grow between 31 december 2003 and 31 december 2003. So it would seem the reposting script messed up big time. Maybe the COGS where not charged (or not charged right) to the Inventory account. Maybe the reposting script used 2011 price levels for 2003 inventory and invoices. Maybe the 2003 hardware can be considered antique and has a matching price level. Look up the price of a 1Mb SIMM (no, not Dimm, Simm, and no, not Gb, Mb). Was 5$ in 2003, now is more like 50$.
When e.g. you do NOT enter the beginning balance using an invoice, the COGS of sales would be zero, botching both results and inventory in one simpel step iirc. However, without a thorough investigation as to the details of inventory, sales and results over the past years (2003 up to now) it is hard to make any serious comments or statements. I hope (trust) your results and books have been audited at some point in time during those years. Bookkeeper, accountant, IRS, anybody? Errors in one Account on the Balance Sheet tend to have a counterpart in another account. That can be either a balance sheet account or a profit and loss account. The fact that the current balance sheet shows the right figures (in your opinion) is a good sign, I would skip the fun part, close the books and enforce transaction reversal for all dates before say 2010 or 2009. Tip: use reposting scrips on test database first! And use backups of the original database if e.g. IRS turns up and wants to audit 2003! For arguments sake, say they should believe the reported value of 62k was wrong and should be 343k. One might come to the conclusion your profit for the year was understated by some 271k. Hth, Paul 2011/1/19 Jeff Kaminsky <[email protected]> > I ran a reposting script back in 2009, which mediocre results. > > For fun today, I ran our 2003 balance sheet which states 62k in inventory > (which seems reasonable), but when I looked at my actual inventory account, > it shows 343k which is an unreasonable number. I looked at todays's balance > sheet and it matches our inventory account exactly. What does it mean? > > Jeff > > -- > > Jeff Kaminsky > Sr. Accountant > IX Systems > 408-943-4100 ext 122 > > _______________________________________________ > SQL-Ledger mailing list > [email protected] > http://lists.ledger123.com/mailman/listinfo/sql-ledger >
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