Stock ledger, stock value and cost of goods sold

What it is

Stock ledger. Every movement of stock — a purchase received, a sale, a return, an adjustment, opening stock, a counter sale — is one line with the date, quantity, unit cost, reason, who did it and the document it came from. Nothing in the ledger is ever edited; a mistake is corrected by a new adjustment. Stock & value (Accounting → Stock & value) shows each product's ledger quantity, its average cost and its value.

Two numbers that should agree. Each product also has a plain stock figure (the one the shop sells from). The Reconciliation report lists products where it differs from the ledger — for example stock typed in the Master catalogue or imported by CSV before the ledger existed. Nothing is corrected by itself; you post an adjustment or enter opening stock.

Valuation. Weighted average cost by default (every purchase re-averages the cost of what you hold); FIFO is a company setting. Valuation as on a date replays the ledger to any day — the closing-stock figure your CA asks for.

Getting started

1. Opening stock with cost (Stock & value → Opening stock): for each product not yet in the ledger, the quantity you hold (prefilled) and what one unit cost you. Posting sets the ledger and the stock figure to the same number.
2. From then on, purchases received, shop and counter sales, returns and adjustments write the ledger by themselves.
3. Track stock value (Accounting settings): switch on when the opening stock is in. Purchases of stock items then post to *Stock in hand* instead of *Purchases*; every sale posts *Cost of goods sold* at the ledger's cost; returns reverse it; the P&L shows Gross profit and the balance sheet shows closing stock. Off, the books keep the simpler periodic method.

Adjustments and counts

• Adjust stock: quantity (+ found, − damaged / lost / expired / sample) and a reason. Adjustments worth more than the company limit at cost (₹10,000 by default) need an admin.
• Stock count: create a sheet (all products or one category), open it on a phone, type what you counted (scan a barcode or type a SKU to jump to the line), Save as you go, then Post — every difference becomes an adjustment with its reason.

Reports

Stock summary (qty + value, Excel), movements per product, slow / dead stock (no sale in N days), gross margin per product and category, valuation as on a date, reconciliation.

Staff keys

"See stock value and movements", "Adjust stock", "Run a stock count". Opening stock, the valuation method and the "Track stock value" switch stay with the admin.