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Using TurboCASH

 







STOCK ADJUSTMENTS
TRADING STOCK SHORTAGES
  
During the financial year some of the trading stock you have purchased during the year, may have gone lost or stolen. A physical stock count is normally done by many businesses at month end and at year-end. A stock shortage or deficit occurs when the value of the physical stock items on hand, is less than the value of stock in the ledger or stock records. Trading stock shortage or deficit is an expense (fruitless or useless expense or cost) to the business.

Identify the stock shortages and calculate the trading stock items on hand:

For example, the Stock Control Account on the pre-adjustment trial balance shows tools trading stock as R() 5 500. In the Stock Item Report, 11 items (drill presses) with a Cost Price of R() 500 each was displayed.

 

Name of the business. System date and time. Name of the report. Stock Item code. Description or name for the Stock Item. Unit in which the Stock Item is traded. Quantity on Hand as updated in the Input - Stock Adjustments and when Documents are updated to the ledger. One of the 3 selected Selling Prices (VAT - Excluded) as entered in the Edit - Stock Items or adjusted in the Input - Adjust Stock Items (Selling Prices) menu options. The total value of the Stock at cost price. Page number. Latest Cost Price as updated in the Input - Adjust Stock (Take-on and/or Adjusted) and/or in the Input - Documents menu option. Average Cost Price as updated in the Input - Adjust Stock (Take-on and/or Adjusted) and/or in the Input - Documents menu option. Stock Count column is blank for stock taking purposes. Quantities may be entered as on the shelves. Discrepancies in quantities on hand need to be adjusted in the Input - Adjust Stock menu option. This is the quantities on hand x the Cost Price (Latest or Average Cost - depending on the Use Cost Price method selected). Total of the net value of the Stock Items at cost price.

At the end of the financial year, (on 28/29 February), a physical count of our stock items (stock-taking) was done and it was found that only 10 items (drill presses) valued a R() 5 000 (10 items at R() 500 each) was on hand in the stores.

To Adjust the Stock Items:
Click on the Input - Adjust Stock menu option or press the and keys on your keyboard. Alternatively you may press the and and keys on your keyboard. The Stock Item (Adjustments tab) screen will be displayed.

Title bar - double-click to display this screen in full size. double-click again to return to the original size. Close button - click to close or exit this screen. Select to create, edit or delete a Stock Item. If selected, you may edit the data in the columns for each Stock Items. If selected, all the adjustments options are listed. Select, if not already selected to adjust Average and Latest Cost. Select to adjust Stock Quantities and Average Cost. Select to adjust Stock Quantity and Latest Cost. Select to adjust Selling Prices of Stock Items. Click on the down arrow to select to take-on Opening Stock Quantities and Cost or to select a Stock Item on the Stock Item search facility. Scroll bar - scroll to view more columns for the Stock Items. Scroll bar - scroll to view more Stock Items. Select this Option and click on the folder icon to select a valid Lotus Spreadsheet File. Enter or select a valid date using the Date Picker. Select to adjust Selling Prices by a specified percentage. Click OK to save your changes and to process this screen. Click to close or exit this screen. Select to apply the Selling Price Adjustment to all Stock Items. Arrow - indicates the selected Stock Item. The Codes for all the available Stock Items. The Descriptions for all the available Stock Items. The Average Cost for your Stock Items. Unit Cost - The cost price per Stock Item unit. Quantity of Stock Items on hand. The minimum level for Stock Items before you need to re-order. Barcodes will be displayed if you use barcodes. Minimise button - click to minimise this screen. Restore button - click to restore this screen to its original size.
Select the Quantity and Latest Cost or the Quantity and Average Cost option (depending on whether you have selected to use Latest or Average Cost of Sales in the Setup - System Parameters - Stock Information menu option.
Select the Date on which you need to adjust the stock quantities. This would in this case be the last day of the financial year (28/29 February).
Click on the button to save your changes.
Click on the button or the Close button to close or exit this screen. You may also press the key on your keyboard to close or exit this screen.
Generate the Stock Item Listing Report to check that the adjustments and totals are reflected correctly. The Stock Item Report should reflect the correct adjusted total or R() 5 000 in this example.
Name of the business. System date and time. Name of the report. Stock Item code. Description or name for the Stock Item. Unit in which the Stock Item is traded. Quantity on Hand as updated in the Input - Stock Adjustments and when Documents are updated to the ledger. One of the 3 selected Selling Prices (VAT - Excluded) as entered in the Edit - Stock Items or adjusted in the Input - Adjust Stock Items (Selling Prices) menu options. Page number. Latest Cost Price as updated in the Input - Adjust Stock (Take-on and/or Adjusted) and/or in the Input - Documents menu option. Average Cost Price as updated in the Input - Adjust Stock (Take-on and/or Adjusted) and/or in the Input - Documents menu option. Stock Count column is blank for stock taking purposes. Quantities may be entered as on the shelves. Discrepancies in quantities on hand need to be adjusted in the Input - Adjust Stock menu option. This is the quantities on hand x the Cost Price (Latest or Average Cost - depending on the Use Cost Price method selected). Total of the net value of the Stock Items at cost price.