Stock Reconciliation is the process of counting and evaluating material/products, periodically at the year end.
This is done in order to:
- Keep the actual physical stock count and book stock count in sync
- Value the stock for preparation of the accounting statements
The Stock Reconciliation feature in ERPNext is used for:
- Posting opening stock
- Reconciling book and actual stock
To access the Stock Reconciliation list, go to: > Home > Stock > Tools > Stock Reconciliation
1. How to Create a Stock Reconciliation to Post Opening Stock
Using stock reconciliation you can update the number of specific items in a warehouse as of specific time. You can also add Items in the stock which have Serial Numbers or the Batch Numbers.
- Go to the Stock Reconciliation list, click on New.
- Select the Purpose as 'Opening Stock'. You can edit the posting Date and Time.
- Select Item Code, Warehouse, Quantity, and Valuation Rate. If there is a Serial / Batch No involved, add it.
- If you want to auto-generate Serial No / Batch No then keep those fields blank.
- For auto-generation of Serial No, you need to set "Serial Number Series" in the Item master.
- For auto-generation of Batch no, you need to enable "Automatically Create New Batch" checkbox in the item master.
- The Difference Account will be set as 'Temporary Opening'.
Save and Submit.
> Note: Maintain Stock option should be enabled in Item master for this to work.
2. How to Create a Stock Reconciliation to Reconcile Book and Physical Stock Count
Stock Reconciliation is the process of counting and evaluating stock-in-trade, periodically and at year-end in order to value the total stock for preparing accounting statements. In this process, the actual physical stocks are checked and recorded in the system. The actual stocks and the stock in the system should be in agreement and accurate. If they are not, you can use the Stock Reconciliation tool to reconcile stock balance and value with actuals.
To reconcile the stock:
- Go to the Stock Reconciliation list, click on New
- Select the Purpose as 'Stock Reconciliation'. You can edit the posting Date and Time.
- Set Item Code, Warehouse.
- The current Quantity and Valuation Rate will be fetched, change the quantity as required.
- The expense account in Difference Account will be set to 'Stock Adjustment' by default.
- The Cost Center default will be 'Main', change if needed.
Save and Submit.
3.1 Upload Data Through Spreadsheet
If you have a lot of items, you can upload the details via a spreadsheet.
Open new Stock Reconciliation and click on Download button to download the template in CSV format.
Enter Data in CSV Template.
The CSV format is case-sensitive. Do not edit the headers which are pre-set in the template. In the Item Code and Warehouse column, enter exact Item Code and Warehouse as created in your ERPNext account. For quantity, enter the stock level you wish to set for that item, in a specific warehouse.
Upload the CSV file with the data by clicking on 'Upload' button.
Review, Save and Submit.
Check Stock Ledger Report for updated stock balance.
3.2 Get Stock Balance and Valuation as of Specific Date and Time
You can import the stock balance and valuation as of specific date and time from a selected Warehouse by clicking on Items button. You can update the Quantity and Valuation Rate as needed.
3.3 Using barcode scanner to scan physical inventory
If you have configured barcodes for your items you can use a barcode scanner to reconcile physical quantities. To do this follow these steps:
- Set default warehouse
- Enable "Scan Mode" this will disable fetching existing quantity and let you add quantities by incrementally scanning items.
- Click on "Scan Barcode" field and use your barcode scanner to send input. Reconciliation items table will will keep getting updated as you scan items. Following video demonstrates this process.
4. How Stock Reconciliation Works
Once a stock reconciliation is posted to update the quantity on specific date and time for an item in a warehouse, it will not be modified by subsequent stock transactions even if such transactions have a posting date which is prior to the stock reconciliation date. In other words, backdated entries will not change the stock numbers after a Stock Reconciliation entry is posted.
Examples are as follows.
4.1 For non-serialized Items
Consider an item with code 'ABC001' in a 'Mumbai' warehouse. Let's assume that stock as on 10th January is 100 units. Stock Reconciliation is made on 12th January to set stock balance to 150 units.
Stock Ledger would look as shown below:
|Posting Date||Qty||Balance Qty||Voucher Type|
If a new Purchase Receipt entry is made on 5th January 2014, which is prior to the date of Stock Reconciliation entry, Stock Ledger would look as shown below.
<table border="1" cellspacing="0px">