Stocktake and dashboard P&L

I thought I had this stocktake thing sorted but I find myself confused and overwhelmed yet again.  I have been doing periodic stocktake using journal entries as per the instructions below.

What I get confused by is that on the last day of the month, I can see the profit and loss amount on the dashboard after I complete the stocktake journal entry.

When I do the 1st day of the month journal entry the very next day, the P&L on the dashboard (financial position) alters dramatically.  Which one is correct?  Should I not do the 1st day of the month journal entry on the 1st day of the month and rather do it at the end of the month (with the entry date as the 1st?) just before doing the end of month entry?

Steps currently followed:

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