How can i view the value of an item in stock with continues stock?

[Former Member]

I am working with multiple branches and the journals can not be reconciled. I am thinking this is because of the value it has when it enters the stock in one warehouse and leaves the warehouse to be transferred to another warehouse of another branch

[Former Member]

I just want to find a way that the Item in stock is not valuated with for example the FIFO method when it leaves the stock of one branch to the other. Because in the accounting standards of Belgium it is not correct that an item is 'sold' to another branch for 900$ (exempted from tax) but the journal entry concerning the stock (Debit on account 609400 and Credit on account 340000 ) is one of 685.11$ because that is how it is valuated by FIFO standards

When the other branch 'purchases' the Item for 900$ it also puts a journal entry for 900$ concerning the stock (debit on account 340000 & credit on account 609400).

So on account 609400 there is an amount of 685.11$ on debit and an amount of 900$ on credit

on account 340000 there is an amount of 900$ on debit and an amount of 685.11$ on credit

We use the same stock accounts for the branches. These accounts are not in balance so this is a problem in our accounts.

I hope i made my problem a bit more clear

In every case thank you for the help you already offered

[Abdul]

If you want to reconcile Audit Report With GL then Run the Audit report by GL option it will shows you balance posted in GL by inventory transactions and if there is difference check GL account transactions there must be other transactions like JE, AP Service or other than inventory transactions.

[Abdul]

Dear

In branches setup stock transfer mechanism is just like sale from one branch and purchase in other branch and its accurate according to accounting practices.

Like in sales process following entries posted

1- Cost of Sales ------Debit

Stock --------------------------------Credit

2- Receivable --------------Debit

Sales--------------------------------------Credit

In stock transfer from one branch to other branch use Sales invoice and AP invoice with the help of duplicate to option on right click, doing this it will be easy to understand.

If you are using Goods Issue and Goods receipt for stock transfer from one branch to other following entries will be posted.

1- GL on Goods issue ------Debit

Stock Account---------------------------Credit

2- Stock on Goods Receipt ----------------Debit

GL on Goods Receipt ------------------------------------Credit

[Former Member]

I just want to find a way that the Item in stock is not valuated with for example the FIFO method when it leaves the stock of one branch to the other. Because in the accounting standards of Belgium it is not correct that an item is 'sold' to another branch for 900$ (exempted from tax) but the journal entry concerning the stock (Debit on account 609400 and Credit on account 340000 ) is one of 685.11$ because that is how it is valuated by FIFO standards

When the other branch 'purchases' the Item for 900$ it also puts a journal entry for 900$ concerning the stock (debit on account 340000 & credit on account 609400).

So on account 609400 there is an amount of 685.11$ on debit and an amount of 900$ on credit

on account 340000 there is an amount of 900$ on debit and an amount of 685.11$ on credit

We use the same stock accounts for the branches. These accounts are not in balance so this is a problem in our accounts.

I hope i made my problem a bit more clear

In every case thank you for the help you already offered

[Abdul]

Hi,

I believe you are booking entry of sales at sale price rather than cost price. If you sale the item at zero price to other branch it will post entry of 685.11$ as below

Cos of Sales -----Debit 685.11$

Stock----------------------Credit 685.11$

and purchase the item exactly at cost at which it released from stock for sales (You can Add Exact Cost Manually or deploy FMS on unit price field of A/P invoice to fetch exact cost from relevant sales invoice) ..Your account will be balances.

Stock ----------Debit 685.11$

Payable---------------Credit 685.11$

If it did not resolve your problem please share a complete entry double entry for batter understanding.

[Former Member]

Hi

So this is the complete journal entry of both invoices. As you can see account 340000 and account 609400 are not in balance. This is the way such a transaction is automatically booked by our accounting standards. My question remains how this indifference can be fixed. I think that the change in stock is booked for 685.11 because it is valuated this way by FIFO standards. When Branch B purchases the goods however the system thinks these are new goods wich are valuated at the purchase price: 900$. I think this is my problem. I hope you can help me

The sales invoice from branch A to branch B

Debit

- A01: Customer account = 900$

- 609400: Change in stock = 685.11$

Credit

- 700000: Sales account = 900$

- 340000: Stock of goods: aqcuisition = 685.11$

The purchase invoice from branch B to branch A

Debet

- 340000: Stock of goods: aqcuisition = 900$

- 604000: Purchase account = 900$

Credit

- 609400: Change in stock = 900$

- BEL02: Vendor Account = 900$

[Abdul]

Hi,

Yes you are right system valuate at 900$ because for purchase transaction 900$ is purchase price so system valuate it at 900$.

In order to avoid it in future please book sales transaction at zero price and purchase transaction at cost of sales.. in this case financial entry will be like this

Debit

- A01: Customer account = 0$

- 609400: Change in stock = 685.11$

Credit

- 700000: Sales account =0$

- 340000: Stock of goods: aqcuisition = 685.11$

The purchase invoice from branch B to branch A

Debit

- 340000: Stock of goods: aqcuisition = 685.11$

- 604000: Purchase account = 685.11$

Credit

- 609400: Change in stock = 685.11$

- BEL02: Vendor Account = 685.11$

To achieve the above results you need to know cost according to FIFO at the time of sale invoice so you can book purchase invoice exactly equal to cost at which stock has been released from selling branch. You can do this manually at the time of customization or add UDF on Purchase invoice which shows cost price at which 609400 has been debited at the time of sale invoice.

For already posted transactions you need to post inventory revaluation to decrease value of stock as in this scenario purchase has been booked at sales price which is Overstated when you do revaluation you will use 609400 as offset account and you will reduce price of stock from 900$ to 685.11$ and following entry will be posted

Debit 609400 214.89$

Credit 340000 214.89$

You can do revaluation one by one for each FIFO layer created at the time of purchase.