Stocktake with P&L report
How do I enter our monthly stocktake so that the figures appear on the P&L but not as an accumulated amount? I just realised the instructions I followed 2 years ago to do monthly stocktake using a general journal, are different to those that MYOB are now providing online (see below)
So I have re-entered all the account codes for all the stocktake months this year. Now the P&L is showing a total Opening Stock and Closing Stock account amounts that are the total of every month added together. That can't be right? Surely I'm not supposed to do an EOFY adjustment each month?
On the last day of the month, perform a stocktake and value your stock on hand and enter a journal entry to record this:
- debit the Stock on Hand (Asset) category
- credit the Closing Stock (Cost of Sales) category
the amount entered should be the value determined in your stocktake.
On the first day of the next month, create a journal entry to reverse the closing stock entry:
- debit the Opening Stock (Cost of Sales) category
- credit the Stock on Hand (Asset) category
the amount entered should be the previous month's closing stock value.
Enter an EOFY adjustment to reverse the impact on the opening stock and closing stock expense categories.
- debit the Closing Stock (Cost of Sales) category
- credit the Opening Stock (Cost of Sales) category
the amount entered should be the same amount as entered in steps 5 and
If this journal entry isn't recorded, the opening and closing stock will increase every time you enter an end of month journal.
