January 2007 (04)
New Stock Valuation facilities in the General Ledger

 

We have had several queries from customers who want to know what to do as far as stock valuation is concerned in the General Ledger

(For more information on generating stock value reports see the newsletter on stock valuation posted in August 2006 Here )

The procedure for handling stock valuations in the General Ledger is as follows:

  • Create a header stock valuation account in the General Ledger (if you do not already have one) The type of account should be set to AC - current asset.
    Please note that a new facility enables you to have sub accounts for this account. For example, you may have a header account (950.000 - Total Stock Value) and sub accounts (950.001 - Products), (950.002 - Raw Materials), (950.003 - Packaging), and so on.
    The header account must be set in:
    <System Control><Maintenance><Allocations>[Stock Value] to be the account allocated to Stock Value.
  • Create a Stock Adjustment account in the General Ledger (again, if you do not already have one)
    Please note that this account may NOT have sub accounts.
    This account must be set in:
    <System Control><Maintenance><Allocations>[Stock Adjustment] to be the account allocated to Stock Adjustments.
  • In the first month of operation the two accounts indicated above will have no values.
    Stock valuation reports for the various stock entities are produced for the last day of an accounting period.
    The total figures from these reports are debited against the relevant Stock Value account by journal entry, using the date of the end of the relevant period.
    The credit account for the other side of the journal is the Stock Adjustment account.
  • Please note that you do not need any other stock accounts in the GL. If any other stock accounts exist because you have upgraded from a legacy programme, please zero and disable them.

That is all you need to do! Simple huh?
Any queries email me here.
Phil Curtis

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