Stock value reconciliation setup
Reconciliation of stock value versus accounting is an important part of the financial control of a company.
In Business NXT, you can set up this functionality for order processing and stock take processing. This setup is crucial to ensure that the stock value and accounting records are in sync. Once the setup is complete, the logistics processings can be reconciled with the accounting records.
Mandatory settings
- In the Company information table, select GL trans. per invoice (Recommended) in the Accounting processing field.
With this setting, separate general ledger transactions will be produced per invoice, instead of accumulating them for all invoices which are posted at the same time. This is the only way to connect a specific product transaction to a general ledger transaction.
Settings for order processing
In the Accounting instances field, in the area about logistics in the Company information table, you can enable the order processings for the different transactions.
See also: Accounting instances
It is recommended to select both Accounting and Direct update for all order processings.
| Table | Field | Setting |
|---|---|---|
| Company information | Order processing |
|
Post temp. stock value on sales and Post temp. stock value on purchase are optional settings. These settings will create a preliminary posting when finishing which will be reversed when performing invoicing / invoice receipt and should be used if finishing and invoicing / invoice receipt is not performed at the same time.
These settings need to be combined with the Post temp. stock value setting in the Processing method field in the Product table.
| Table | Field | Setting |
|---|---|---|
| Company information | Order processing |
|
| Product | Processing method |
|
Specific setup for production order processing
To ensure that structure heads are updated correctly if cost prices on structure lines are changed, the setting Compute average cost price on order line needs to be set in the Order processing field in the Company information table or in the Processing method on the structure line products.
Also select Accounting and Direct update in the Accounting instances field in the Company information table for the following processings:
- Cost on further processing
- Cost on production when approval
- Cost on production when finishing
The setting Cost on production when finishing creates posting on the Product in work account when finishing an order line on a production order with Transaction type 5 - Further processing. This setting is intended to be used together with the Cost on production when approval option, which reverses the posting on the Product in work account and creates a posting on the Production warehouse account. You define the Product in work and Production warehouse accounts in the VAT- and accounting information table.
Reconciliation for order processing
You can perform reconciliation for order processing, including the following features:
- Tracking of temporary stock cost in production orders
- Automatic cost correction if the cost price changed after finishing and invoicing the order
- Tracking of stock change, stock cost and realised stock value in the Realisation journal line table
Realising orders
When realising an order that affects the stock, the realised stock value will be updated with the final stock cost, and the temporary stock cost will be reversed using a new Realisation journal line. This will create a connection to the general ledger transaction on the reversal.
If the realisation of a stock increasing order (purchase or production) is performed after a price change, a separate realisation journal line with the corrected stock value will be created, and the correction of stock cost will be automatically posted to the general ledger.
If a realisation of a purchase order is performed after a price change and the goods purchased have been used as raw material on a production order, the production order line will be updated with the new cost price, and the main product in the structure will be updated with new cost price accordingly.
You can use the accounting instance option Post temp. stock value on production if a temporary posting of stock value is required. The posting will be done on the accounts that have been set in the Debit temp. stock cost production and Credit temp. stock cost production fields in the VAT- and accounting information table. The posting will help keep control over finished, non-realized production from production orders, like the temporary posting on purchase orders. The temporary posting will be reversed after realising the main product.
Reconciliation for stock take processing
You can perform reconciliation for stock take processing, including the following features:
- Setting up a specific account set used for stock take only
- Using order numbers for stock take transactions and reference these order numbers on the vouchers to have a link between product transactions and general ledger transactions
If an account set is specified in the Stock take account set field in the Company information table, this account set will override the Default account set field in the Company information table. This allows the tracking of stock cost originating from stock take on a separate account.
If Use order numbers for stock take is selected in the Order processing 1 field in the Company information table, an order number will be consumed for each stock take and added to the product transaction and to the corresponding voucher. The purpose is to create a direct link between the general ledger transaction and the product transaction.