Updating Stock Value to the General Ledger

When I run a Profit & Loss report my Opening and Closing inventory figures are the same.  Should they be?

Solution

No they shouldn’t.  You must create a journal to the Closing Stock Account to reflect your new stock on hand valuation.   This journal can be created by Infusion by going to Products / Utilities / Update Stock Value to G/L. 

Enter the date as the last day of the month*

The Stock Value currently on hand will display.

From here you can overtype the stock value, update or exit.

Once you have updated the Stock Value you will see a Journal in your Closing Inventory GL, showing the update to the stock valuation.

This figure will update to your Profit and Loss Report, as we dated it at 28/09/2020 it will be the Closing Stock for September and the Opening Stock for October.

*BUT it is recommended that you do the update about the middle of the following month,  after all Supplier Invoices have been received.

If entries have been backdated into a prior month, it is necessary to run this update for each subsequent month, in order as the figures will have changed.