Fastbase

The following document is to aid users in understanding the process of stock reconciliation. Stock Reconciliation is normally resorted to when there are variances between Stock and General Ledger figures for a given period.

The Stock Valuation Report is normally run to get the value of stock on hand for a given period. The stock on hand figures from the stock valuation report must be compared to the figures in the General Ledger.

In order to get the stock on hand figures from the General Ledger, the GENERAL LEDGER UPDATE must have been run for the given period. Once the GL Update has been performed, the stock on hand figures be can be obtained from either the Balance Sheet or from a GL Enquiry.

In some cases, an organisation may have more than one stock account (eg. one for each branch). See Utilities - Module: General Ledger. In this case, when the balance sheet is run, all the stock on hand figures are displayed individually for each branch. These figures have to be added to give the total stock on hand figure for a given period.

Reasons why variances may occur between stock on hand figures in the Stock Valuation Report and Balance Sheet or GL Enquiry:

Fastbase Accounting System - Online Manual Stock Reconciliation	Document 104584/1 Entered Wed, 20 Oct 2004 13:02 by James Thambuswamy Updated Thu, 21 Oct 2004 12:17 Previous
The following document is to aid users in understanding the process of stock reconciliation. Stock Reconciliation is normally resorted to when there are variances between Stock and General Ledger figures for a given period. The Stock Valuation Report is normally run to get the value of stock on hand for a given period. The stock on hand figures from the stock valuation report must be compared to the figures in the General Ledger. In order to get the stock on hand figures from the General Ledger, the GENERAL LEDGER UPDATE must have been run for the given period. Once the GL Update has been performed, the stock on hand figures be can be obtained from either the Balance Sheet or from a GL Enquiry. In some cases, an organisation may have more than one stock account (eg. one for each branch). See Utilities - Module: General Ledger. In this case, when the balance sheet is run, all the stock on hand figures are displayed individually for each branch. These figures have to be added to give the total stock on hand figure for a given period. Reasons why variances may occur between stock on hand figures in the Stock Valuation Report and Balance Sheet or GL Enquiry: Manual journals being posted to the GL stock accounts. Goods Receipt not invoiced (good receipts update stock and not the GL), only when a goods receipt is updated to a Supplier Invoice, will it update the GL. To check for active goods receipts, run the Inwards Goods Report and set the Include All? option to *"Active/Period". For more information also see Invoice Goods Receipts/Credits. Goods Receipted in a given period (eg. September) but invoice created in the following period (eg. October) or previous period (eg. August) NOTE: In some case variances may occur due to stock quantities going into negative or there may be other reasons which need further investigation. Run the Stock Audit Report for a given period and look out for significant variances. We suggest running the summary report first, this shows totals for each product type. Then run the detail report for any product types showing signficant variances. Other Issues (Company Specific)** Handling of non-stock products. Users need to be aware that non-stock items will not appear in the stock valuation report, therefore make sure they are not posted to the GL stock accounts see Utilities - Module: Inventory (refer to General Ledger) Handling of consignment stock
Balancing Stock Figures	Document 104584/2 Updated Thu, 21 Oct 2004 12:15
In conjunction with balancing the stock valuation with the General Ledger you will also want to confirm the cost of sales figures and purchases for a given period. The cost of sales figures can be derived from many different reports including the Stock Audit Report, Customer Sales Analysis Report and Stock Sales Analysis. The purchases for a given period can be found by running the Inwards Goods Report for the selected period and setting the "Include All?" option to "Yes" (the default). This report will include a total for the "Landed Cost" which is in your local currency (usually NZD). The purchases for a given period can also be made up of additional transactions, these include Stock Adjustment and Transactions - Part Assembly.