A purchase bill is booked as a purchase when it comes in. The goods you have not used yet are still worth something, so at the end of every month JAI CRM values the stock in hand and books the change.
How it is worked out
- Each item is valued at its weighted average cost: every arrival with a cost moves the average, and goods going out leave it as it is.
- At each month end, the stock in hand is the quantity of every item times its average, across all warehouses.
- Moving goods between your own warehouses does not change their value, and goods on the road between two of them still count. Units lost on the road, when a transfer is closed short, are a loss.
- Stock below nil is valued at nothing, and the next arrival is valued at what it cost.
- The Valuation report under Inventory → Reports reads the same figure, item by item, with what is on the road beside it.
- The change since the month before is one entry: Stock in hand against Changes in stock. For the month still running, the figure is as at today.
- Opening stock is not profit made in its first month, so its value goes to Opening balance adjustments instead.
Where you see it
- Balance sheet: Stock in hand, under current assets.
- Profit and loss in Accountant: Changes in stock beside Purchases. Together they are what the goods used cost.
- The entries are made for you and kept in step: a stock movement dated back changes every month after it. They cannot be edited by hand.
The figure is only as right as the stock counts. Record goods receipts, shipments and adjustments as they happen, and the books follow.
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