Stock – Movements Overview

Purpose:
Your system records stock movements as being one of the following categories:

Issues – Movements out of stock (e.g.: sales to an external customer) that reduce the quantity and value of the stock. Issues are quantified and valued on a FIFO (First In First Out) basis – the oldest stocks held are adjusted.
Receipts – Movements into stock (e.g. goods inward from suppliers) that increase the quantity and value of the stock. As with issues, once the records have been updated, these are quantified and valued on a FIFO basis – the receipts are valued at the prices and costs used when adding the transaction.
Transfers – recorded as being both an issue of a quantity of stock from one stock code and a receipt of the same quantity into another stock code– overall stock quantity will remain the same, but the value may change slightly if the values of items differ.
Adjustments – Increases or decreases in the amount of stock held. One use of this is to adjust for differences in stock levels highlighted by stocktaking.
Manufactures – A particular type of Issue designed to allocate component products to an assembly. These can also be used as bills of material for manufacturing components.

The Stock Module interacts seamlessly and automatically with other system functionality by updating the stock files for Issues and Receipts generated by the following Accounting Transactions:

• Sales Daybook> Produce Sales invoices- generates Issues.
• Sales Order Processing >Invoice sales orders – generates Issues when delivered.
• Sales Daybook >Produce Credit Notes – can generate Receipts (if required).
• Purchase Order Processing > Receive Goods – generates Receipts.

Stocks can also be updated manually using one or more different Movement Types.

Preparation:
Select a Company – see Change Companies.
Change the system date as required – see Change Default Accounting Date.
Ensure that any stock movement has supporting documentary evidence.
Ensure that any stock movement has been authorised and agreed with the relevant managers within the organisation.
Use the same movement type each time to record similar transactions.
Print any stock details prior to recording the movement as required.
Design a series of reference codes to be used consistently for each type of movement. This will make these easy to identify and track.
Ensure adjustments are owned and a clear audit trail exists fro these that identifies Who, Why, What, When, Where and How any adjustment is made.
Create any new stock locations required – see Create & Delete Locations.
Create any new stock items -see Create & Edit Products and Services.
Manufactures only – ensure that up-to-date Bills of Materials exist showing which products and or sub-assemblies are required to produce output.

Processing:
See the following articles in this section –

• Issues, Receipts, Returns & Adjustments
• Chargeable Issues
• Batch Receipts
• Transfers
• Stocktake Adjustments
• Manufactures

Balancing/Reconciliation:
Ensure the total balance on mominal ledger stock accounts equals the stock value after update. Ensure all movements are correctly and completely recorded in the nominal ledger.

Reporting:
Print a list of stock movements – see List Stock Transactions. Distribute as required by management.

Filing:
Sign and date reports and file with related documents.