Automated Inventory Valuation
In that case, when a product enters or leaves your stock, an accounting entry will be automatically created. This means your accounting books are always up-to-date. This mode is dedicated to expert accountants and advanced users only. As opposed to periodic valuation, it requires some extra configuration & testing.
First, you need to define the accounts that will be used for those accounting entries. This is done on the product category.
Continental Accounting
Note
Configuration:
- Accounts Receivable/Payable: defined on the partner (Accounting tab)
- Deferred Tax Assets/Liabilities: defined on the tax used on the invoice line
- Revenues/Expenses: defined by default on product’s internal category; can be also set in product form (Accounting tab) as a replacement value.
- Inventory Variations: to set as Stock Input/Output Account in product’s internal category
- Inventory: to set as Stock Valuation Account in product’s internal category
Vendor Invoice (PO $50, Invoice €50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
|
|
| 14100 Raw Materials Inventory |
|
|
| 19000 Deferred Tax Assets |
$ 4.50 |
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
$ 54.50 |
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Purchased Goods |
$ 50.00 |
|
| 52000 Purchased Services |
|
|
| 58000 Inventory Variations |
|
|
| 59000 Other Operating Expenses |
|
|
Vendor Goods Reception (PO $50, Invoice $50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
$ 50.00 |
|
| 14100 Raw Materials Inventory |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Purchased Goods |
|
|
| 52000 Purchased Services |
|
|
| 58000 Inventory Variations |
|
$ 50.00 |
| 59000 Other Operating Expenses |
|
|
Vendor Invoice (PO $48, Invoice $50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
|
|
| 14100 Raw Materials Inventory |
|
|
| 19000 Deferred Tax Assets |
$ 4.50 |
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
$ 54.50 |
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Purchased Goods |
$ 50.00 |
|
| 52000 Purchased Services |
|
|
| 58000 Inventory Variations |
|
|
| 59000 Other Operating Expenses |
|
|
Vendor Goods Reception (PO $48, Invoice $50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
$ 48.00 |
|
| 14100 Raw Materials Inventory |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Purchased Goods |
|
|
| 52000 Purchased Services |
|
|
| 58000 Inventory Variations |
|
$ 48.00 |
| 59000 Other Operating Expenses |
|
|
Customer Invoice ($100 + 9% tax)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
$ 109.00 |
|
| 14000 Inventory |
|
|
| 14100 Raw Materials Inventory |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 26200 Deferred Tax Liabilities |
|
$ 9.00 |
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
$ 100.00 |
| 5 Expenses |
|
|
| 51000 Purchased Goods |
|
|
| 52000 Purchased Services |
|
|
| 58000 Inventory Variations |
|
|
| 59000 Other Operating Expenses |
|
|
Customer Shipping
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
|
$ 50.00 |
| 14100 Raw Materials Inventory |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Purchased Goods |
|
|
| 52000 Purchased Services |
|
|
| 58000 Inventory Variations |
$ 50.00 |
|
| 59000 Other Operating Expenses |
|
|
Anglo-Saxon Accounting
Note
Configuration:
- Accounts Receivable/Payable: defined on the partner (Accounting tab)
- Deferred Tax Assets/Liabilities: defined on the tax used on the invoice line
- Revenues: defined on the product category as a default, or specifically to a specific product.
- Expenses: this is where you should set the “Cost of Goods Sold” account. Defined on the product category as a default value, or specifically on the product form.
- Goods Received Not Purchased: to set as Stock Input Account in product’s internal category
- Goods Issued Not Invoiced: to set as Stock Output Account in product’s internal category
- Inventory: to set as Stock Valuation Account in product’s internal category
- Price Difference: to set in product’s internal category or in product form as a specific replacement value
Vendor Bill (PO $50, Invoice €50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
|
|
| 14100 Raw Materials Inventory |
|
|
| 14600 Good Issued (Stock Output) |
|
|
| 19000 Deferred Tax Assets |
4.50 |
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
54.50 |
| 23000 Stock Received (Stock Input) |
50.00 |
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
|
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
|
|
Vendor Goods Reception (PO $50, Invoice $50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
50 |
|
| 14100 Raw Materials Inventory |
|
|
| 14600 Good Issued (Stock Output) |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 23000 Stock Received (Stock Input) |
|
50 |
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
|
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
|
|
Vendor Bill (PO $48, Invoice $50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
|
|
| 14100 Raw Materials Inventory |
|
|
| 14600 Good Issued (Stock Output) |
|
|
| 19000 Deferred Tax Assets |
4.50 |
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
54.50 |
| 23000 Stock Received (Stock Input) |
48.00 |
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
|
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
2.00 |
|
Vendor Goods Reception (PO $48, Invoice $50)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
$ 48.00 |
|
| 14100 Raw Materials Inventory |
|
|
| 14600 Good Issued (Stock Output) |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 23000 Stock Received (Stock Input) |
|
$ 48.00 |
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
|
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
|
|
Customer Invoice ($100 + 9% tax)
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
$ 109.00 |
|
| 14000 Inventory |
|
|
| 14100 Raw Materials Inventory |
|
|
| 14600 Good Issued (Stock Output) |
|
$ 50.00 |
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 23000 Stock Received (Stock Input) |
|
|
| 26200 Deferred Tax Liabilities |
|
$ 9.00 |
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
$ 100.00 |
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
$ 50.00 |
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
|
|
Customer Shipping
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
|
$ 50.00 |
| 14100 Raw Materials Inventory |
|
|
| 14600 Good Issued (Stock Output) |
$ 50.00 |
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 23000 Stock Received (Stock Input) |
|
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
|
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
|
|
Production Order
|
Debit |
Credit |
| 1 Assets |
|
|
| 11000 Cash |
|
|
| 13100 Accounts Receivable |
|
|
| 14000 Inventory |
$ 50.00 |
|
| 14100 Raw Materials Inventory |
|
$ 52.00 |
| 14600 Good Issued (Stock Output) |
|
|
| 19000 Deferred Tax Assets |
|
|
| 2 Liabilities |
|
|
| 21000 Accounts Payable |
|
|
| 23000 Stock Received (Stock Input) |
|
|
| 26200 Deferred Tax Liabilities |
|
|
| 3 Equity |
|
|
| 31000 Common Stock |
|
|
| 4 Revenue |
|
|
| 41000 Goods |
|
|
| 5 Expenses |
|
|
| 51000 Cost of Good Sold |
|
|
| 52000 Manufacturing Overhead |
|
|
| 53000 Price Difference |
$ 2.00 |
|