Stock integration to the nominal ledger
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Details
There are two methods for the stock to integrate into the nominal ledger with only one that is the preferred and is set-up as standard with all new installs.
Method one - Automatic Cost of Sales (preferred)
This method works by the system posting journal entries into the accounts automatically for the whole process of an item of stock being booked into stock and subsequently then sold, right through to an item that is booked into stock, booked onto a job card and then subsequent then sold.
The process
There are four nominal centres that are used for the process.
- Z920 Stock Accruals
- Z921 Cost of Sales
- Z922 Stock Value
- Z923 Stock Adjustments
For this example lets say an item of stock has a cost value of 100.00
1. When the item is booked into stock the system makes the following entry into the nominal ledger,
Z920 Stock Accruals -100.00 CR Z922 Stock Value 100.00 DB
The above is has the affect that the stock value is increased by 100.00 and the other side of the journal has accrued for the purchase by crediting the Stock Accruals because we have not yet received the invoice.
2. When the item is sold, the system makes the following entry into the nominal ledger,
Z922 Stock Value -100.00 CR Z921 Cost of Sales 100.00 DB
