Choose the account that holds the opening value of your inventory

Learn about your options when you select the account or accounts holding your inventory opening balances. You select the account or accounts where you recorded your inventory value before you imported your opening balances.

If you're unsure about selecting the account, we recommend you consult with your accountant or bookkeeper.

Image showing options for opening balances accounts.

A single account

Select this option if:

  • You are new to Xero and you entered your inventory conversion balance in a single account.

    Image showing inventory conversion balance.

  • You are an existing Xero user and you've been recording all your inventory purchases in one purchases expense account.

  • You are an existing Xero user and you've been recording all your inventory purchases in one inventory asset account.

When you select A single account, the account you select will display in the Adjustment Account column on the import template. This is the account Xero credits in the opening balances journal.

The debit side of the journal is the account or accounts listed in the Inventory Asset Account (do not edit) column of the import template. This is the account or accounts you've selected to hold the value of your tracked inventory items going forward. Do not edit the accounts in this column.

Image showing import template adjustment account.

Your Adjustment Account will be the same as your Inventory Asset Account if you're not changing the account that holds the value of your inventory. If you are changing the account, the Adjustment Account and the Inventory Asset Account will be different.

Multiple accounts

Select this option if:

  • You are new to Xero and you've entered your inventory conversion balances in more than one inventory account.

    Image showing multiple inventory accounts used in conversion balance.

  • You are an existing Xero user and you've been recording inventory purchases in multiple purchases expense accounts.

  • You are an existing Xero user and you've been recording inventory purchases in multiple inventory asset accounts.

  • You are an existing Xero user and you've been recording inventory purchases in a combination of inventory purchases expense accounts and inventory asset accounts.

When you select Multiple accounts, you will need to enter the account which currently holds the value of your inventory item in the Adjustment Account column on the import template. These are the accounts Xero credits in the opening balances journal.

The debit side of the journal is the account or accounts listed in the Inventory Asset Account (do not edit) column of the import template. This is the account or accounts you've selected to hold the value of your tracked inventory items going forward. Do not edit the accounts in this column.

Image showing multiple accounts on import template.

Your Adjustment Account will be the same as your Inventory Asset Account if you're not changing the account that holds the value of your inventory item. If you are changing the account, the Adjustment Account and the Inventory Asset Account will be different.

I'm not sure

Select this option if you're not sure which account or accounts to select. Xero will populate the Adjustment Account column of the import template with the Historical Adjustment account from your chart of accounts.

Selecting this option allows you to track the quantities and values of your tracked inventory items straight away, even if you're not sure how to handle your opening balances in Xero. Your accountant or bookkeeper can change this later.

You will only need to complete the Quantity on Hand and Total Value on Hand columns of the import template. Then save the import template file and complete the rest of the opening balances import process.

Review and complete the opening balance import

Image showing don't know import template.