How to update stock adjustment account?

ERPNext Accounting
1

I followed the documentation at - Perpetual Inventory

and created a material receipt of an item with some valuation. Now, I want to issue this item with difference account as “cost of goods sold” (because I forgot to check “update stock” while making a sales invoice)

Everything happened according to the documentation and respective ledgers (Stock in Hand, Stock Adjustment and COGS) were handled by the system.

However, when you look closely, you will realize that the material receipt was done with difference account as “Stock Adjustment” while doing material issue, the difference account was set as “COGS”.

Now, how do we adjust the “Stock Adjustment” account (its a P&L report account)?

It’s always credited on material receipt (Stock In Hand is debited) while in case of material issue, COGS was debited (and Stock In Hand is credited). And hence, Stock Adjustment is never really “adjusted”.

2

Apparently, both COGS and Stock Adjustments accounts are “Expense” accounts and both appear in the P&L statement. This means that if Stock Adjustment is “credit” in any transaction, COGS shall be “debited” in others.