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How does QnE handle Stock Loss issue?

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How does QnE handle Stock Loss issue?


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.

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Article Details
Views: 941 Created on: Aug 07, 2014
Date updated: Aug 07, 2014
Posted in: Delphi

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