Mismatch between the value of closing stock recorded in the company books and the actual physical stock in the godown can arise due to
● Inaccurate stock records
● Theft, damage, loss, and so on
You can rectify this mismatch by passing a physical stock voucher. We recommend that you clear all the purchase and sales bills pending before you pass the physical stock voucher.
Note: Bills pending are incomplete entries displayed until the receipt and dispatch of goods and bills are recorded. Hence, all adjustments for bills pending quantities are made after all other entries.
Purchase bills pending include:
|
Particulars |
Effect to arrive at final closing quantity |
|
Goods received but bills not received |
Added |
|
Bills received but goods not received |
Subtracted |
Sales bills pending include:
|
Particulars |
Effect to arrive at final closing quantity |
|
Goods sent but bills not sent |
Added |
|
Bills sent but goods not sent |
Subtracted |
Note: Purchase and sales bills pending have to be viewed from the beginning of the financial year up to the date of passing the physical stock voucher.
ABC Ltd has recorded a closing stock of 40 nos. in their company books. The actual physical stock available in their godown, however, is 50 nos. They have purchase bills pending of 10 nos.
ABC Ltd passes a physical stock voucher in order to record the actual closing stock, which is 50 nos. as shown below:
However, as a result of this, in the Stock Vouchers report, the total closing stock appears as 60, as shown below:
This is because pending purchase bills of ABC Ltd. are also considered in calculating the total closing stock.
To rectify this mismatch,
1. Clear all the purchase/sales bills and then pass the physical stock voucher to arrive at the correct closing stock value.
OR
2. If bills cannot be cleared, appropriate adjustment (add the pending quantity in case of sales bills and subtract the pending quantity in case of purchase bills) must be made in the physical stock voucher on the actual stock taken.
You can apply the following formula to calculate the amount to be entered in the physical stock voucher:
Quantity to be entered in Physical Stock Voucher = Physical Stock Count – Purchase Bills Pending + Sales Bills Pending
Note: The quantity in a physical stock voucher cannot be a negative value. If the value is negative after you calculate the quantity, you need to clear the bills pending.
For the illustration above,
ABC Ltd does not clear its bills pending. Hence, ABC Ltd can rectify this difference by subtracting the quantity of purchase bills pending.
To rectify this
1. Drill down to the physical stock voucher from the Stock Vouchers report.
2. Enter 40 as the Quantity (you need to deduct 10 nos. that are already accounted for in the bills pending).
Note: Appropriate adjustment (addition or subtraction of the quantity) in the physical stock voucher has to be made based on the purchase and sales bills pending.
3. Press Ctrl+A to accept.
The Stock Vouchers report displays correct values as shown below:
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