To use the Update Stock to Nominal functionality you will need to set up one or more Stock Type Analysis Records.

The Analysis records for the Purchase Ledger, that are used when purchasing Stock, should be changed to Debit the Goods Received Not Invoiced (GRNI) account in the Balance Sheet rather than the Purchasing accounts in the Profit and Loss Account.

For example:

20100 Default Purchases

Change from Dr 20100 Default Purchases

to Dr 82150 Goods Received Not Invoiced

The Stock Type Analysis record can only be used for: POP Orders for Stock lines; POP Credit Notes for Stock lines; Stock Movements; Stock Takes and Assemblies.

The currency of a Stock Type Analysis record must match the currency of the order being placed.

To insert a new Stock Type Analysis record:

Select Analysis

Press Insert to create a new record

Select Stock Type from menu

Complete the record entry and save by pressing OK.

For more information see: Analysis Records

From the Period End window, select the O/S Orders report to display the amount outstanding to be invoiced against any Purchase Orders which have been delivered.

This is the Goods Received Not Invoiced report. The transactions in this list exclude future posted values and only show Home value. A reversing journal can be entered to transfer this value into the Nominal Ledger at the month end.

When the window is set to As at - Period End, the display will include the values of orders that have had a delivery made, but not invoiced, as at the current period.

The transaction list will exclude STOCK transactions that have invoice and delivery activity that has been processed after the current period. For example: orders invoiced and completed in a future period; orders where deliveries have been made in a future period and orders with part-deliveries and part-invoicing in future periods.

However, the transaction list will include PRICE & TEXT transactions that have invoice and delivery activity processed after the current period. This is because for Price and Text items there is no delivery history available. Price and Text transactions displayed in the list can be excluded from any further processing by changing the YES to NO.

When the window is set to As at - To Date the display will include orders where deliveries have been made, or order lines completed, after the current period.

The Print icon enables you to produce the O/S Orders report and to post a Reversing Journal to transfer the value of the Outstanding Orders into the Nominal Ledger at the Period End.

If the System option to Update Stock to Nominal has been selected in the Stock Options:

Price and Text lines will be loaded into the list flagged as YES.

Stock lines will be flagged NO and cannot be changed to YES, the Nominal Ledger will already have been updated for these items.

If Update Stock to Nominal is not selected:

Stock, Price and Text lines will be loaded into the list and flagged as YES for processing.

The Stock Type is shown to ensure that Price and Text lines are easy to identify.

You can exclude the Price and Text transactions from the Journal by changing the YES to NO, and include items by changing NO to YES.

Double click a line to change the flag.

Select multiple lines using Ctrl + Click or Shift + Click.

Subtotal by: From this menu you can select to subtotal the report in various ways. From the Output window, you can select to print the report based on the list as subtotalled, otherwise, the report will be printed without subtotalling.

Press Print to run the report and produce the journal.

From the report Output window, you can:

Print the O/S Orders report.

Before printing:

Select to Print based on list as displayed, this may be required if you have made use of the Subtotal by option.

Select the print output.

Post Reversing Journal to update the Nominal Ledger.

If you are posting a Reversing Journal, you can select to Batch the Journal.

Then you should enter a Voucher Ref.

The double entry for the Journal is left blank for you to define the Debit/Credit Nominal Codes in which the outstanding liability/asset will be accrued.

The printed report will be sub totalled by the YES/NO selections made on the O/S Orders window, so that any Journals posted can be reconciled to the report.

When Purchasing Stock, if the option to Update Stock to Nominal is selected, the analysis code will default to using an additional Stock type analysis code as well as a Purchase type analysis code.

This analysis code would normally be set to Dr Stock (B/S), Cr Goods Received Not Invoiced (B/S).

When selecting a Stock analysis code in a POP order for a Stock detail line, the drill down list of available analysis codes will contain Stock type codes only.

When inserting a new Stock analysis code on the fly, for a Stock detail line, the analysis type will default to Stock type.

Stock type analysis codes are not available for Price and Text lines.

Delivering a Purchase order stock line will create a Nominal journal which uses the stock analysis code to define the double entry. This journal uses the order cost of the stock item.

Invoicing a Purchase order stock line will create a Nominal journal which uses the Purchase analysis code to define the double entry. This journal uses the invoice cost of the stock item.

The Invoice cost is shown in the transaction enquiries except for Stock and Sub Analysis transaction enquiries which show the cost as at Delivery.

When posting Purchase Orders through POP or PIR, you have the option to enter or change the value to be equal to that on the invoice received. When a line of an Order is fully posted the order value is compared to the invoice value and any difference posted as an adjustment to correct the Stock valuation.

If the Invoice Cost is greater than the Delivery Cost, then the double entry is:

Dr Stock Adjustment A/C (B/S)

Cr Goods Received Not Invoiced (B/S)

If the Invoice Cost is less than the Delivery Cost, then the double entry is:

Dr Goods Received Not Invoiced (B/S)

Cr Stock Adjustment A/C (B/S)

Close Order/Close Line in POP batch processing also causes a Price adjustment transaction to be created.

A Variance Report is provided to enable you to track these adjustments and to reconcile Stock valuations to Balance Sheet Accounts. The report is found in Reports and is only available if the System option Update Stock to Nominal has been selected.

This account helps you to track the effect that differences in cost have on your stock values.

As described above, these differences occur when there is an accepted price variance between the Purchase Invoice price and the Purchase Order price.

This change in value is posted to the account for Stock Adjustments.

If you are using the FIFO cost basis, you should decide each month how much of the adjustment should be posted by Journal to Cost of Sales and how much will remain as an addition or reduction to your inventory value.

If you are using Weighted Average Value you may wish to consolidate the whole of this value into your inventory account.

In the case where a currency other than home has been used, and there has been a price and/or exchange rate change, then the whole currency difference is posted as the currency equivalent.

Example:

Deliver 10 items at £10, Exchange rate £1 : $1.5

Invoice 10 items at £12, Exchange rate £1 : $1.6667

Price Adjustment