Inventories

Inventories, numbered 1210 with account type Stock, is the group that totals goods held for sale or for use in production. In the standard chart it has one child, Stock In Hand, but a manufacturer may add Raw Materials, Work In Progress and Finished Goods beneath it. The group total is the stock figure on the Balance Sheet and in the Cost of Goods Sold working, and the IRD expects it to agree with the physical count at Ashadh end. Because the account type is Stock, only stock documents can post to the ledgers under it: Purchase Receipt, Delivery Note, Stock Entry and Stock Reconciliation. A Journal Entry to a stock account is refused when perpetual inventory is on.

Inventories = Sum of Stock In Hand and any other stock ledgers = Quantity x Valuation rate across all warehouses.

1. 01Go to Accounts Setup > Chart of Accounts and expand Assets > Current Assets > Inventories.
2. 02Read the child Stock In Hand; add more stock ledgers here only if you need to show stock types separately.
3. 03Open Financial Reports > Balance Sheet; Inventories shows Rs 4,50,000 of opening stock in the demo.
4. 04Open Stock > Stock Balance report to see the same value split by item and warehouse.
5. 05At Ashadh end, count the stock and post differences with Stock > Stock Reconciliation.

Do not post here. Stock Entries, Purchase Receipts and Delivery Notes post to Stock In Hand beneath it.

Inventories show Rs 4,50,000 of opening stock in the demo books.