End of Month Stock Valuation & Daily Stock Revaluation

The processes to obtain your Stock Valuation at the end of month.

Overview

End of Month Processes

Daily Task to Revalue Stock on Hand

Setting up your Stock Module in Lentune

Overview

You can keep up to date with the valuation of your Stock on Hand by running these processes, and having Lentune automatically create the General Ledger journal entries necessary at the end of the month. This will help you to know the rebated value of your Stock.

You can also set up a Daily task to create these entries in order to show the correct stock valuations throughout the month.

The process goes through the Stock file and sums the total based on the Branch Average Cost of all Stock Items.

Refer to Calculating Cost Price and Margins to read about how the costs are calculated. This will also depend on whether your system is set up to use Branch Average Cost or Replacement Cost.

When setting up your Stock module in Lentune, you can specify the General Ledger codes for the Stock on hand and Stock changes. Refer to the section below Setting up your Stock Module to read about this.

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End of Month Processes

Refer to the Stock Manager setup notes below for suggested General Ledger codes to be used. This setup ensures that the automatic postings in daily and end of month stock adjustments appear correctly on your Stock and General Ledger reports.

The processes to be completed to achieve the value of Stock on Hand at the end of the month are:

1. Close Receivable Month. This is found on the Receivables > Monthly Tasks menu. This would normally be done on 1st of following month, and after all receivable invoicing has been done.
2. Wait until all Payable invoices for the previous month have been entered and approved, usually around the middle of the next month. You need these in the system so you can get the last month's average cost.
3. Close Payable Month. This is found on the Payables > Monthly Tasks menu.
4. Close Stock Month. This is found on the Stock > Monthly Tasks menu. This will generate a General Ledger journal from the stock table. This values all stock at the end of the month, and posts:
   1. Debit to Change in Stock (Profit & Loss), and
   2. Credit to Stock on Hand (Balance Sheet), 

(or vice versa depending on stock movements for that period.)

You can instead obtain adjusted values from the Create Stock rebate spreadsheet, if you are using the last four Rebate fields on the individual Stock codes. Refer to How Stock Rebates work to read about this.

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‌Daily Task to Revalue Stock on Hand

You can set up a daily scheduled task called End Of Day Post Stock Valuation to value stock on hand on a daily basis. This will assist you to keep up to date throughout the month with the current value of your stock on hand.

This will create a daily journal as described in the Close Stock Month section above, which then ensures that your Stock on Hand shows the up-to-date accounting value in your Balance Sheet, and Changes in stock valuation is shown in your Trading reports.

Refer to Create a scheduled task to learn how to set this up.

Then you can run Stock reports such as the Stock Valuation Report and the Stock Management Report. These are located on the Stock > Reports menu.

The Branch and Company Statements of Financial Performance Reports will show you the change in stock valuation that affect your trading result for the period being reported.

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