1) Month End Stock Balance Report = 1,000
* Do Stock Adjustment - minus out all quantity and add in again same quantity but with new cost
* This cost is actual stock value after stock take, eg: 850
2) Stock Value Maintenance = 850
* Closing Stock value in PnL & BS
3) Stock Loss Entries (Stock Written-Off Account)
* Create new GL Code = Stock Loss Account/Stock Written-Off Account (PnL)
* Create Journal - DR Stock Loss Account & CR Cost Of Sales/Purchases Account = 150
* In PnL-GP will see double counting but indeed it's not. Because when refer to both BS-Stock & PnL-C/S Report it'll not double counting.
* In PnL-NP - $ no reflect
Options for No. 3)...
* Create new GL Code = Provision for Stock Account (BS)
* Create Journal - DR Provision for Stock & CR Cost Of Sales/Purchases Account
Reason : If user do not want to reflect PnL performace.
Also, the discrepancies $ might be found at the end of year.
Anyhow, at the end of the year, user need to do Journal to settle off Provision for Stock Account. Final decision will be depends on customer point-of-view and judgement on Stock Loss issue.