Stock In Hand
Also called: Inventory, Closing Stock
Value of goods in your warehouse at cost, on the Balance Sheet. Rises on purchase receipt, falls on delivery or consumption.
In detail
Stock In Hand is the ledger that carries the value of goods in the warehouses at cost. It rises when a Purchase Receipt or a Stock Entry of type Material Receipt brings goods in and falls when a Delivery Note, a Sales Invoice with Update Stock, or a Material Issue sends them out, with the cost moving to Cost of Goods Sold. The value is quantity times the valuation rate kept per item, and it must equal the Stock Balance report across all warehouses. With perpetual inventory on, you never post here by Journal Entry; a count difference is posted with Stock Reconciliation, which adjusts quantity and this ledger. The opening Rs 4,50,000 came in against Temporary Opening.
Formula
Stock In Hand = Sum over items and warehouses of Quantity x Valuation rate = Opening stock + Receipts at cost - Issues at cost.
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Stock In Hand | Rs 4,50,000 | |
| Temporary Opening | Rs 4,50,000 |
How to record it in BRAccount
- 01Go to Stock > Stock Entry > New, set type Material Receipt and tick Is Opening for opening stock.
- 02Add each item with quantity, warehouse and valuation rate; set Difference Account to Temporary Opening.
- 03Submit. The entry above posts for Rs 4,50,000 of opening stock on Shrawan 1, 2083.
- 04For normal purchases, use Stock > Purchase Receipt; for sales, Stock > Delivery Note; each posts here automatically.
- 05Open Financial Reports > Stock Ledger and Stock Balance to confirm the total matches this ledger.
When to use it
Posted automatically by Stock Entry, Purchase Receipt and Delivery Note when perpetual inventory is on. Do not post by Journal Entry.
Example from the demo books
Opening Stock Entry: Dr Stock In Hand Rs 4,50,000, Cr Temporary Opening Rs 4,50,000 on Shrawan 1, 2083.