Closing Stock

[Former Member]

Dear All

We are not maintaining inventory in SAP. We need to enter Closing stock value at the month end. The same should be the opening stock for next month.The closing stock amount should reflect both in P&L and Balance sheet.please advice us how to post.

Regards

Rashid

[former_member186095 · Accepted solution]

Dear Rashid,

you could consider to use G/L account opening balance or journal entry. The stock account is in the asset drawer and the asset drawer is a balance sheet account. Meanwhile the opening balance account is on the P&L. you could use taxation and extraordinary item drawer, operating cost drawer or else depends on the database localization you have. To know it, just run this query:

select lawsset from CINF

Rgds,

[Former Member]

Hi Ragu

I am getting the stock value from other system. i am taking the consolidated valve from the other system and putting in the accounts , I am not using inventory module and so there is no question of perceptual inventory.

what is my scenario is i am going to create an account called closing stock and i need to capture the closing stock values there

Regards

Rashid

[Former Member]

Dear Muhammed Rashid,

As Mr Peter explained, if this is the case of Perpetual Accounting is concern, also refer the below thread.

Regards,

Raghu N

SAP Business One Forums Team

[Former Member]

Hi Muhammed

Nearly forgot, check account determination after setting to Periodic posting method.

Kind regards

Peter Juby

[Former Member]

Hi Muhammed

Are you referring to using Periodic vs Perpetual Stock in SAP? If so, make sure your version supports Periodic Stock posting and that this is selected in Administration > System Initialization > Company Details > Basic Initialization TAB > Use Perpetual Inventory (un-ticked for Periodic).

In terms of posting, you will need an opening and closing stock account in the Cost of Sales section of the COA, and the trading stock account in the Asset section. Entries are usually as follows:

First reverse old stock balance to opening stock account, then post new value to closing stock.

1/1/2008 - Dr Opening Stock 100,000

1/1/2008 - Cr Trading Stock 100,000

31/1/2008 - Dr Trading Stock 120,000

31/1/2008 - Cr Closing Stock 120,000

Kind regards

Peter Juby

[Former Member]

Dear Muhammed Rashid,

As you know, the link between P&L and Balance sheet is Retained earnings accounts, comming under Balance sheet. Now If I have to understand your issue, you need the retaned earnings ( balance of P&L) to flow to balance sheet.

Please explain the business Requirement in detail. Also you said you do not maintain Inventory, please through some more light on it.

Regards,

Raghu N

SAP Business One Forums Team