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
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 -
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
The header account must be set in:
Value] to be the account allocated to Stock Value.
- Create a Stock
Adjustment account in the General Ledger (again, if you do not already
Please note that this account may NOT have sub accounts.
This account must be set in:
be the account allocated to Stock Adjustments.
- In the first
month of operation the two accounts indicated above will have no
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
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.
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