Stock Value and Stock Balance

When you use stock management, there are several points you must observe in order to calculate the correct value of your stock.

The Historical Stock Value report shows all Articles that on the entered date have either quantity or value in stock. If you print the report to PDF, you also get a total per Article group, which you can reconcile with your stock account via the finance Balance report.

Thus, the report is the most important tool to reconcile your stock — at the same time it can show you Articles for which you need to make corrections.

1. Close fiscal years and recalculate primo posts

One of the most important prerequisites for reconciling stock is that your opening entries are recalculated. If you have not closed your previous fiscal years, there is a risk that stock values will be adjusted backward in time.

This may occur, for example, if:

• you have posted a purchase delivery in an old fiscal year but only post the invoice in a new year
• you adjust the average value of stock recorded in an old year
• you cancel a delivery or invoice posted in an old year
• you post a stock count with date in an old year

If you want adjustments to take place in an old fiscal year, you must open the period, post the desired adjustments, recalculate opening entries, and then close the period again.

2. Reconcile “Unpaid Stock”

This function is found under Finance > Reconciliations, tab Stock. Here you see all open purchase orders where you either have posted a delivery or a purchase invoice. These orders have a value posted to the account Stock, unpaid in the financial accounts.

The financial account Stock, unpaid is an interim account where purchases are temporarily booked until precise quantity and price are known. If you see purchase invoices in this screen where both delivery and invoice are posted, they must be reconciled.
➡️ Read more about reconciling Unpaid stock

3. Articles with zero quantity but having a value

In some cases, you may have an Article in the report where quantity = 0.00, but still shows a value.

This can happen if:

• you create a new Article and post sales on it before posting the purchase invoice
• you post a purchase delivery, then do a stock count to zero, then post the purchase invoice afterward
• you post a purchase delivery, then adjust the average value, and only afterwards post the invoice
• the average price was not correctly calculated in the last stock count
• you post a delivery on purchase order no. 1, create a new order no. 2 for the same Article and post delivery and invoice at a different price, then cancel the delivery on order 1
• you post a purchase invoice on an order with remaining delivery, where the Article had no existing average price, and you sell the Article before the remaining delivery is invoiced

How to correct the value to 0.00:

1. ⚠️ Make sure that any open sales or purchase orders for the Article are either not delivered/invoiced or both delivered and invoiced.
2. Create a purchase order with quantity = 1 and price = 0.00. Deliver and invoice the order.
3. Adjust the Article’s average price to 0.00. This posts corrections you can see in the Article postings tab under Details — Stock is credited and Product consumption is debited.
4. Create a new purchase order with quantity = –1 and price = 0.00. Deliver and invoice the order.

4. Articles with quantity but negative value

This can happen for the same reasons as above, but where you have subsequently posted a purchase invoice or a sales credit note, and the average price is lower than the total negative value of the Article.

⚠️ Before correcting, you must ensure that there are no open sales or purchase orders for the Article.

Then adjust the Article’s average price. If the average price is already correct, you may change it by 0.01 up or down and then back, so the posting balances. When you post the correction, Stock is debited and Product consumption credited.
➡️ Read morre about Stock and average prices

5. Negative stock balance

If an Article erroneously has a negative balance, it is usually because your physical inventory did not match the system’s stock, and you sold more Articles than was registered.

How to reset the balance:

1. ⚠️ Ensure that there are no open sales or purchase orders for the Article.
2. Create a stock count for the Article with quantity = 0.01. Enter date and post.
3. Then create a new stock count with quantity = 0.00. Enter date and post.

The balance and value in Stock Receipt / Stock will now be reset to zero.
➡️ See the guide about stock count 

6. Incorrect display of quantity on the Article

If you see an incorrect quantity displayed on the Article card (e.g. 0 units), but a different quantity in the Article list or in the Historical Stock Value report, it is usually because the display has not been updated.

This does not affect postings. The display is automatically updated next time you purchase or sell the Article. You can also manually update by clicking Recalculate manually, which only updates the display (no posting).

7. Changing the average price

When you change the average price of an Article, corrections are posted to Stock and Product consumption. This is the correct method if you want to write up or down the Article’s value relative to purchase cost.

However, you cannot change the average price to a date before the last physical movement of the Article. If you pick an invalid date, you will be notified and the earliest valid date will be shown.

How to do it:

1. ⚠️ Ensure that there are no open orders for the Article.
2. Go to the Stock management tab on the Article.
3. Click the pencil icon next to Current average price.
4. Confirm that you understand the consequence of the change (corrections will be posted).
5. Enter the new average price and date, and click Update.

8. Articles with reserved stock

There is no block preventing you from selling an Article you don’t have in stock (overdraft). An overdraft is posted to the accounts Product consumption and Stock receipt at the last known average price. At the same time, the Reserved stock column for the Article is adjusted.

The financial account Stock Receipt acts as an interim account for the temporary posting of overdrafts.

When the stock again goes to zero or positive, cost of goods sold is adjusted automatically if the new purchase price differs from the earlier average price:

• If purchase price is higher → Product consumption increases
• If purchase price is lower → Product consumption decreases

You can see which Articles have reserved stock in the Stock Value report.

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