Record opening and closing stock

The first time you post opening and closing stock journals, you need to create the following nominal codes if you don't have them already:

1. Click Nominal codes then click New.
2. Complete the Nominal record window as follows:

   N/C	Enter the nominal code number you want to use, for example, 5200.
   Name	Enter the name of the account, for example, Opening Stock.

3. Click Save then click Close.

Now you've created your nominal codes, you're ready to post the journals either manually or using the wizard.

Post stock journals using the wizard

Post stock journals manually

If you prefer to post your journals manually, let's go through the postings for the first month and then subsequent months.

Start of month 1 or Financial year - Opening stock journal

 NOTE: If you have no opening stock value on the balance sheet, you can skip the opening stock journal and go to the next section, End of month 1 - Closing stock journal.
First we journal your opening stock value from the balance sheet, 1001,  to the profit and loss, 5200.

1. Click Nominal codes then click Journal entry.
2. Enter a reference then enter a date at the start of month 1.
3. Enter the journal details as follows:

   Nominal code	Name	Details	T/C	Debit	Credit
   1001	Stock	Opening Stock	T9		Value
   5200	Opening Stock	Opening Stock	T9	Value

   When you start using opening and closing stock, the opening stock value at the start of the year is posted to the Opening Stock nominal code, 5200. After this posting, 5200 is not affected again. The Closing Stock nominal code, 5201, is used to post the monthly opening and closing stock figures.
   
   
4. Click Save and click  Close.

To check the value shows in your opening stock you can run the Profit & loss report from the Nominal codes window.

End of month 1 - Closing stock journal

Next we journal the value of your closing stock from the profit and loss, 5201, to the balance sheet, 1001.

1. Click Nominal codes then click Journal entry.
2. Enter a reference then enter a date at the end of month 1.
3. Enter the journal details as follows:

   Nominal code	Name	Details	T/C	Debit	Credit
   5201	Closing Stock	Closing stock	T9		Value
   1001	Stock	Closing stock	T9	Value

4. Click Save and click Close.

To check the values you can run the Profit & loss report from the Nominal codes window.

Start of subsequent months - Opening stock journal

From month 2 onwards, at the start of each month we journal the opening stock value from the balance sheet, 1001, to the profit and loss, 5201. The opening stock value is the closing stock value from the previous month.

1. Click Nominal codes then click Journal entry.
2. Enter the reference then enter a date at the start of the relevant month.
3. Enter the journal details as follows:
   

   Nominal code	Name	Details	T/C	Debit	Credit
   1001	Stock	Opening Stock	T9		Value
   5201	Closing Stock	Opening Stock	T9	Value

4. Click Save then click Close.

To check the values you can run the Profit & loss report from the Nominal codes window.

End of subsequent months or the financial year - Closing stock journal

From month 2 onwards, at the end of the month we journal the closing stock value profit and loss, 5201, to the balance sheet, 1001.

1. Click Nominal codes then click Journal entry.
2. Enter the reference then enter a date at the end of the relevant month.
3. Enter the journal details as follows:

   Nominal code	Name	Details	T/C	Debit	Credit
   5201	Closing Stock	Closing stock	T9		Value
   1001	Stock	Closing Stock	T9	Value

4. Click Save then click Close.

To check the values you can run the Profit & loss report from the Nominal codes window.

When the Year end option is run, the balance on the profit and loss Opening Stock and Closing Stock nominal codes are cleared down to the retained earnings nominal code. This leaves the closing stock as an asset for the year on the Balance sheet report.