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LILAC Document Help

Stock > Stock Take Zone

Stock Take is the physical verification of Stock. Apply Variations! between the LILAC Stock Account, and physically counted stock, will genertate postings of the difference in dollar value (quantity x cost) [if a Stock Account Pack Size is invovled, ie 1 Roll with 30 Metres... therefore Standard Cost / Pack Size]. An example of offsetting postings for LILAC Stock Account of 99, and a physical stock count 98 would be -> Credit (reduction to INVENTORY : Product Code, and a equalling debit (increase to TRADING > STOCK TAKE (a Direct Cost account), see Page 3.

Reports > Stock > On Hand, printed for reference.

Select an existing Zone, or Key in a new one.
Here, a Zone MAINTAIN is keyed, and a limited number of Products are manually added.
*See Example 2 for larger Stock Take Zones using 'Populate' from the ribbon.

Actual counted stock is entered in Item Count column. (Leaving a Stock Count Blank means a Zero Count!)
Toggling on (and off) the Show Variations field displays the Variation and Value columns, that is, actual counted stock compared to the current Stock On Hand.

For each product, the price x variation = value.
For product DWV C040, 5.5 x -10.000 = -55.00

DWV C040, 0 is entered in the Item Count, expected stock was 10.
DWV C050, 1 is entered in the Item Count, expected stock was 10, Variation -9, Value -54.

Stock Take - Apply Variations!

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Stock Take Zone: Example 1

From here 'Apply Variations' from the ribbon will post a total variation of $210, debiting the DIRECT COST account TRADING : STOCK TAKE. A debit to this general ledger trading account essentially contributes to total cost of sales within Profit or Loss reporting, reducing Gross Profit, to account for a reduction in stock.

Where a physical stock take reveals less stock than expected, DWV C040 (0), DWV C050 (1), DWV C065 (2), DWV C080 (3), the Stock Accounts are adjusted down in quantity (credited), and value on hand to reflect the stock take. The physical count of DWV C100 (10), is as expected, there is no credit to the inventory account DWV C100, and no debit to TRADING : STOCK TAKE related to this product.

Following Apply Variations! the Variations and Value columns will be zero (blank), Item Count now matches the updated LILAC stock figures. Ie DWV C040 now has zero (blank) stock.
Reports > General Ledger > Audit Trail : Month To Date : From Batch STOCK,
will detail the results of the Stock Take.

Stock Take - Results

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Stock Take Zone: Example 1

Reports > Stock > On Hand.

Reports > Stock > On Hand

Reports > General Ledger > Audit Trail

Example 2 - Large Stock Take Zone

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Stock Take Zone: Example 2

Populate from the Ribbon, and Non-Current Period option.

Reports > Stock > On Hand may be printed for reference.

With the Stock Take Zone document populated (see following pages), method a or b are available.
a. Use a mobile device to perform the stock take - entering figures into the 'Item Count' column. This process may involve scanning. (Scanning a product barcode with the caret in the product field will populate the Product column).
or;
b. Print the Stock Take Zone document pages, record the results, and transfer the results to a workstation.

Entering stock take figures into the Item Count column is essentially flagging new LILAC stock figures in the Stock Account.

'Apply Variations!' will confirm these figures Documents > Stock > Account.

'Apply Variations!' from the ribbon is the point at which ledger entries credit (or debit) the BALANCE : ASSET Stock Account: Stock and Value. And offsetting debits (or credits) to the DIRECT COST account TRADING : STOCK TAKE.

Debits or credit are made to the Inventory Ledger > Product Accounts affected. Eg line three CABLE RJ45 15 a variation of +1 Items is 1 x $10.80 = $10.80 debit (increase) to the INVENTORY > Product Code.

An accumulated offsetting balance, a debit or credit, is made to the TRADING : STOCK TAKE Account. A debit represents cost, and credit results in revenue. Eg line three $10.80 is part of the net $40.60 which is applied as a debit (cost increase) to TRADING : STOCK TAKE.

The user may toggle on and off the 'Show Variations' check box in the head of the document - this will show the expected variation, ie the difference between Stock Account: Stock..... and Item Count.

Policy may be to show variations after the stock take is completed, in the attempt to get a true or unbiased stock take count.

Stock Take - Standard, or Average Cost

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Stock Take Zone: Example 2

When the variations are applied the variation quantity will adjust the stock and the value of the stock. Variations will be applied at either Standard Cost or Average Cost depending the costing method used. The maintenance of costs within the stock account is therefore important to the process of stock take.

Stock Take - In Non-Current Period?

If necessary, Stock Take can be performed in a non-current (previous) accounting period.
This requires Reports > Stock > Live Check Balance to be run on two occasions.
Before the Stock Take, in the Period the non-current Stock Take occurs.
After the Stock Take, signing into the natural / current period. This process will read transactions which have occurred in subsequent periods to that of the Stock Take in a previous period.

Reports > Stock > Live Check Balance: Recomputes stock figures from ledger transactions and the status of Purchase and Sales Orders.

- Sign into Non-Current (previous) accounting period: Reports > Stock > Live Check Balance
- Select or create a Zone
- Populate the document with Products
- Enter the count from the Stock Take in the Item Count column
- Toggle on or off Show Variations to see the difference between Stock Account: Stock..... and Item Count
- Click 'Apply Variations! to confirm
- Sign into the CURRENT (natural) accounting period: Reports > Stock > Live Check Balance

Live Check Balance recomputes stock figures seen in the Stock Account document from transactions and order histories.

Setting up the Stock Take Zone Document

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Stock Take Zone: Example 2

- Sign into the CURRENT (natural) period: Reports > Stock > Live Check Balance
- Select or create a Zone
- Populate the document with Products
- Enter the count from the stock take in the Item Count column
- Toggle on or off Show Variations to see the difference between Stock Account: Stock..... and Item Count
- Click 'Apply Variations! to confirm
- In CURRENT (natural) accounting period: Reports > Stock > Live Check Balance

Zone is the Key to the document.

The Zone field is searchable with a right mouse click or F12. Meaning that a previously created Zone can be recalled for use. Begin by selecting an existing Zone, or creating one by keying in an appropriate title.

A Zone may be an entire warehouse / storage facility, or, may be a portion of a warehouse / storage facility.

Zone suggestions:
Products All -> From Product (first) To Product (last)
Products Range -> From Product () To Product ()

Group Singular -> From Group () - Eg Zone may be keyed Group name
Group Range -> From Group () To Group ()

Bin Singular -> From Bin ()
Bin Range -> From Bin () To Bin ()

Manually populated
Bulk populated and removing un-wanted lines.

CABLES is choosen as the Group, the Zone is Keyed 01 Cables

Before clicking 'Populate' check the Include Zeros box to include Products in the Stock Account which currently have a zero in the Stock field.

Variation of -5. There are 5 products in Stock Account: Stock. Zero in the Item Count results in the Stock Take Zone document displaying a variation of -5.

Value, is calculated by Variation x Cost, ie -5 x $5.30 for the first product CABLE RJ45 05. This information is available from Reports > Stock On Hand.

Preparing the Body of the Document

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Stock Take Zone: Example 2

'Populate' from the ribbon is used after selecting the group CABLES, along with Include Zeros.
Include Zeros will include products with a 0 (blank) Stock Account: Stock figure, when 'Populate' is clicked.

**Note, at this point there are no accounting postings, meaning the document can be modified or disregarded. The body of the document may be cleared by selecting a From Group + a From Product and clicking 'Populate'.

Show variations can be toggled on and off, which will display and hide the Variation and Value columns.
The image below shows the effect of the Show Variations tick toggled on. The Item count is currently blank (and so recognised as zero).

Stock Take - Item Count Entry

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Stock Take Zone: Example 2

Demonstrated below is the Item Count column entry from the operator during stock take.

Second Stage: Once you have entered all the counts for the Items &/or the Stock units, click Show Variations to see the difference between the counts and the stock values.

When you are satisfied with the variations, click 'Apply Variations!' to post debits and credits.

Use Reports > General Ledger > Audt Trail : Month To Date, to obtain a listing of the adjustments.
Search for the Batch code STOCK dd where dd is the day of the month.

Show Variations is toggled on.
For the first two product lines there is no variation -> Stock Account: Stock, matches the Item Count.
For product lines three, four, and five, the stock take Item Count differs from Stock Account: Stock.
Product line three: 6 counted, 5 in Stock Account = variation of +1
Product line four: 3 counted, 5 in Stock Account = variation of -2
Product line five: 1 counted, 10 in Stock Account = variation of -9

Apply Variations!

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Stock Take Zone: Example 2

'Apply Variations!' from the ribbon posts the Total Variation figure, (sum of the Variation column), in this case a 40.60 debit to the DIRECT COST account TRADING : STOCK TAKE. Offsetting Stock and Value are debits and credits are posted to the BALANCE : INVENTORY accounts.

Clicking 'Apply Variations!' results in account postings. The document is updated in that the Item Count now matches the Stock Account: Stock, meaning the Variation and Value columns are blank (Zero).
Zone 01 CABLES would typically be recalled for another stock take at future time, in which case 'Clear Counts!' from the ribbon would be invoked, and a fresh Item Count would be entered, and Variations applied. The table would typically be re-populated ('Populate') to show / remove stock products which have been added / deleted (in the context of the Group CABLES) between stock takes.

Stock Take - Results

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Stock Take Zone: Example 2

The Reports > General Ledger > Audit Trail: Month To Date : From Batch STOCK shows Inventory quantities and values (Debits and Credits) adjusted.

The first line is debit to inventory, representing the additional product identified in stock take.
Lines two and three are credits to inventory representing deductions to stock.

Line four is the offsetting debit to TRADING : STOCK TAKE, representing a net cost to the business.
TRADING : STOCK TAKE is a cost account. A debit applied increases the cost, increasing total cost of sales in Profit or Loss reporting, reducing Gross and Net Profit.

Reports > Stock > On Hand shows the updated figures after the stock take is complete.

Pre-stock take, Reports > Stock > On Hand is shown below for comparison.

Stock Take Zone

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Stock > Stock Take Zone

Purpose: This document allows the user to perform a stock take.

Prerequisites: The Product records must already exist, the product group must also exist. These can be established via the Stock > Account; and Parameters > Groups > Product Groups.

As Stock Takes are frequently entered in past account periods and further transaction will have occurred in subsequent months, it is important to run the check balance program in Utilities before applying Variations. This Check balance must be run with the account period set for the month of the stock take.

It is equally important that the check balance program be run again after the Variations have been applied in the current account period. This will bring stock account details up to date with the subsequent transaction which occur after the stock take period.

When the variations are applied the variation quantity will adjust the stock and the value of the stock using the standard cost. If the standard cost is incorrect then the value of the stock will adjusted incorrectly. The maintenance of standard cost with your stock accounts is critical to the processing of stock takes.

Any variation applied will create accounting entries, either Debit or Credit to the Individual Stock accounts and the opposite entry to the Trading Ledger, Stock Take Account.

If an error occurs with your stock take eg wrong quantity or standard cost, then the Adjust program for the individual stock account should be used to correct the error.

Zone: Type in the new Stock Take Zone key or search for an existing one.
Date: Type in the date when the stock take was performed.
From Group: Type in the from product group key (or click the right mouse button) and select the key from the list.
To Group: Type in the to product group key (or click the right mouse button) and select the key from the list.
From Product: Type in the from product key (or click the right mouse button) and select the key from the list.
To Product: Type in the to product key (or click the right mouse button) and select the key from the list.
From Bin: Type in the from physical location of the stock, or leave blank if you are not using bin locations.
To Bin: Type in the to physical location of the stock, or leave blank if you are not using bin locations.
Sort By Bin: Check this field if you want the products sorted by their Bin Location. This is used when the Stock Take Zone is populated using the Populate button.
Show Variations: Check this field if you want to see the variations.
Include Zeros: Check this field if you want to all zero balance products. This is used when the Stock Take Zone is populated using the Populate button.

Product: Type in the or search for an existing product key.
Stock Count: Type in the amount of product counted from stock take.
Bin: This field is automatically retrieved from the Product Master Records. Enter in the bin location.
Product Description: This field is automatically retrieved from the Product Master Records. Enter in a description of this product.
Variation: Displays the error in the stock. This is calculated from the Stock Count - Stock (from the Product Master Record). This field is only updated if the Show Variations field is checked.

Processing Button Description:
Populate: Clicking the 'Populate' button will create the lines necessary. If Include Zeros is checked, then all products that have been established and that match the from/to parameters will be added. If the Sort By Bin field is checked, then the products are sorted by their physical location.
Clear Counts!: Clicking the 'Clear Counts!' button will zero all the Stock Count fields, in preparation for a new stock take.
Apply Variations!: Clicking the 'Apply Variations!' applies the variations in stock, and adjusts the stock value and quantity to be that which is established on this document.

For timber applications a right click on the Items column allows a stock count entered with Timber Tally.

Review stock take results via: Reports > General Ledger > Audit Trail: Month To Date : From Batch STOCK