When I run a Profit & Loss report my Opening and Closing inventory figures are the same. Should they be?
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 30/06/2017 it will be the Closing Stock for June and the Opening Stock for July.
*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.