Activate Update Stock to Nominal
Before activating Update Stock to Nominal, it is important that the following points are considered and all batched orders are reviewed.
Choose a suitable moment in time to make the change. You should select a Year End or Period End when you have carried out a Stock Take and when you are confident that the Stock Valuation shown in the Balance Sheet is accurate.
Review any batched Sales Orders and Purchase Orders.
Orders must contain a Stock Analysis code if they are to be processed correctly when Update Stock to Nominal is switched on.
Orders in the batch that are fully unprocessed:
You will be required to edit unprocessed Orders to enter a Stock Analysis code and will not be able to post the transaction without the Stock Analysis being populated.
Automatic update - when Update Stock to Nominal is switched on, you will be prompted to allow the system to add the default Stock Analysis to all unprocessed order lines.
Please note: This processing will only take place if no other Users are logged into the database.
Orders in the batch that are part-processed:
These order lines cannot be edited, our recommendations are:
Prior to switching on Update Stock to Nominal:
Where outstanding order lines have matching delivery and invoice quantities, close these lines and generate new lines for the remaining outstanding quantities. This will enable these order lines to be edited to add the Stock Analysis code.
Where delivery and invoice quantities do not match, you will be unable to add the Stock Analysis code. Whenever possible, you should minimise the number of these orders that remain in the batch before converting to using Update Stock to Nominal. After Update Stock to Nominal is switched on, a Journal will be required to manually adjust the Stock and GRNI accounts for these order lines.
Review the Profit Cost Method you use.
To use this option you must also use Weighted Average, Latest, FIFO, or Fixed Weighted as your Profit Cost Method.
You may only use FIFO as your Profit Cost Method if your Method of Valuation is also FIFO.
If switching to Update Stock to Nominal will result in a change to your Profit Cost Method or your Method of Valuation, you should consult with your Auditors before continuing.
Create Goods Received Not Invoiced (GRNI) accounts in the Balance Sheet.
You should create a GRNI account for each Currency used.
The Major Heading for these accounts is Current Liabilities.
Create new Stock Type, Purchase Ledger Analysis records for Buying Stock.
You should create a Stock Type Analysis record for each currency used.
You should ensure there is a Stock Control Account for each currency used.
When buying stock via Purchase Order Processing, the Stock Type Analysis Code will be used to:
Dr the Stock Control Account in the Balance Sheet
Cr the GRNI account in the Balance Sheet
Create new Stock Type Purchase Ledger Analysis records for Stock Movements In.
You should ensure there are Stock Adjustment Accounts in the Profit and Loss and the Balance Sheet if you wish to account separately for this type of movement.
Dr the Stock Control or Stock Adjustment Account in the Balance Sheet with the receipt of the Stock
Cr a Cost of Goods sold or a Stock Adjustment account in the Profit and Loss account.
Change the Purchase Type Purchase Ledger Analysis records, currently used to post the purchases of Stock to the Purchase accounts in the Profit and Loss Account, to post to the GRNI accounts.
Dr GRNI instead of the Purchase Ledger Purchase Accounts.
Cr Creditors Control Account (remains the same).
Create new Stock Type Sales Ledger Analysis records.
You should create a Stock Type Analysis record for each currency used.
Delivery of Goods sold via Sales Order Processing will use the Stock Type Analysis Code to:
Dr the Cost of Goods sold accounts in the Profit and Loss
Cr the Stock Control account in the Balance Sheet
Create new Stock Type Sales Ledger Analysis records for Stock Movements Out.
You may wish to create separate accounts to record these movements or you can select an existing Cost of Goods Sold account in the Profit and Loss account.
Dr the Cost of Goods sold accounts in the Profit and Loss or other nominated account.
Cr the Stock Control or Stock Adjustment Account in the Balance Sheet with the receipt of the Stock
Create a Nominal Ledger account in the Profit and Loss account for the Non Stock costs associated with Assembly Stock.
Now the Update Stock to Nominal option can be switched on Stock Options - Transactions tab card.
Follow the page in the Help system that describes the Initial Settings for Update Stock to Nominal selecting the new Analysis records when prompted.
Stock Records can be allocated a different Analysis record if required. These are selected on the Analysis Tab card on the Stock record.
Currency
The default Nominal Accounts should be entered on the Stock tab for each Trading Currency Trading Currencies. When new Currencies are added in the future, the Stock Nominal Accounts and Stock Analysis Records will be easily created.