Why are assets added in the Asset & Inventory module not reflected in the Balance Sheet?

Assets added in the Asset & Inventory module are maintained for record-keeping and asset management purposes only. This module is not linked to the General Ledger (GL), so assets added here will not automatically appear in the Balance Sheet.

If you want an asset to be reflected in the Balance Sheet, follow the steps below:

Step 1: Create an Asset General Ledger (GL) Account. (If it does not already exist)

1. Log in to the ADDA Admin Portal.

2. Navigate to General Ledger → Chart of Accounts.

3. Click the Assets tab.

4. Enter the required asset details.

5. Click Save Changes.
   

Step 2: Pass a Journal Entry (JE)

1. Navigate to General Ledger → Journal Entries.

2. Create a Journal Entry (JE) using the newly created Asset GL account.

3. Enter the required transaction details.

4. Save and post the Journal Entry.

Once the Journal Entry is posted, the asset value will be reflected in the Balance Sheet and other applicable financial reports.

Note: The Asset & Inventory module is used to maintain a record of physical assets, whereas the General Ledger is used for financial accounting and reporting. Therefore, adding an asset in the Asset & Inventory module alone will not update the Balance Sheet.

Author: Sandhya

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