Stock Readjust Valuation

This module allows for the retrospective adjustment of product costs and Cost of Goods Sold (COGS) based on a calculated weighted average cost over a specified period. It is designed to correct valuation discrepancies and ensure accurate financial reporting, particularly for Point of Sale (POS) transactions.

Features

• Period-Based Readjustment: Define a Start Date and End Date to calculate the Weighted Average Cost of products based on Initial Stock and Purchases within that period.
• Initial Stock Correction: Automatically readjusts the value of the stock on hand at the Start Date if the target cost differs from the historical cost.
• COGS Readjustment: Propagates the new Average Cost to all Outgoing Stock Moves (Sales, Manufacturing, etc.) within the period.
• POS Accounting Correction: Specifically handles POS transactions by creating secondary accounting entries to move the cost difference from the Interim Stock Output account to the Final POS Expense account.
• Traceability:
  • Generates a unique sequence (ADJ/XXXXX) for each readjustment record.
  • Smart Button to view all generated Accounting Journal Entries.
  • Detailed references in Journal Entries linking back to the Readjustment record, Stocks Moves, and POS Sessions.

Accounting Logic

1. Initial Stock Adjustment

• Trigger: Difference between Initial Value and Target Initial Value.
• Accounting Date: Start Date of the Readjustment Period.
• Entry: Adjusts Stock Valuation vs Expense/Gain-Loss.

2. COGS (Delivery) Adjustment

• Trigger: Outgoing Stock Moves within the period.
• Accounting Date: End Date of the Readjustment Period.
• Entry: Adjusts Cost of Goods Sold vs Stock Valuation.
• Calculation: (New Cost * Qty) - Abs(Current Value)

3. POS Specific Adjustment (Secondary Correction)

• Trigger: Outgoing Moves linked to POS Orders.
• Context: POS transactions typically move cost from Stock Valuation -> Interim Output (Delivery) -> Expense (POS Session Closing).
• Primary Correction: Adjusts Stock Valuation vs Interim Output.
• Secondary Correction: Adjusts Interim Output vs Final Expense.
• Accounting Date: End Date of the Readjustment Period.
• Reference: Includes POS Order and POS Session Name for easy reconciliation.

Usage

1. Go to Inventory > Operations > Stock Readjustment.
2. Create a new record.
3. Select the Product Category (optional filtering) and set the Date Range.
4. Click Load Products to populate the lines with products that had stock or moves during the period.
5. Review the Qty at Start, Valuation at Start, and Purchase Value.
   • You can manually edit Qty Counted and Target Initial Value if the system computed values need overridings.
6. Click Calculate to see the New Average Cost.
7. Click Apply Readjustment to post the corrections.
8. Use the Journal Entries smart button to review the posted moves.