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Former Member

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

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

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3 Answers

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    Former Member
    Apr 05 at 07:13 AM

    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

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  • Apr 04 at 02:32 PM

    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

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    • 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.

  • Apr 04 at 02:40 PM

    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.

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