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 Stock Management app provides access to stock management and can be installed via the Xena App Store. This guide assumes the app is installed.

The Historical stock value report shows all items that, as of the entered date, have either a quantity or a value in stock. If you print the report to PDF, you also get a total per item group, which you can reconcile with your stock account via the Balance ledger report.

The report is therefore the most important tool for reconciling your stock – it also shows you which items need correction.

 

1. Close the fiscal year and recalculate opening balances

One of the key prerequisites for reconciling stock is that your opening balances have been recalculated. If you have not closed your previous fiscal years, stock values may end up being adjusted retroactively.

This can happen if:

• you post a purchase delivery in an old fiscal year, but only post the invoice in a new year

• you adjust the average value of stock posted in an old year

• you cancel a delivery or invoice posted in an old year

• you post a stock count with a date in an old year

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

 

2. Reconcile "Stock, unpaid"

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

The Stock, unpaid account is a clearing account where purchases are posted temporarily until the exact quantity and price are known. If you see purchase invoices in the screen where both the delivery and the invoice have been posted, these need to be reconciled.

➡️ Read more about reconciling Stock, unpaid

 

3. Items with zero quantity but a value

In some cases, you may see an item on the report where quantity = 0.00, but a value is still shown.

This can happen if:

• you create a new item and post sales for it before posting the purchase invoice

• you post a purchase delivery, then do a stock count to zero units, and only afterwards post the purchase invoice

• you post a purchase delivery, then adjust the average value, and only afterwards post the purchase invoice

• the average price was not calculated correctly at the last stock count

• you post a purchase delivery on purchase order no. 1, create a new purchase order no. 2 for the same item 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 partial delivery, where the item has no existing average price, and sell the item 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 item are either not delivered/invoiced at all, or both delivered and invoiced.

2. Create a stock count for the item, set the counted quantity = 1. Post the stock count.

3. Change the item's average price to 0.00.

4. The above two steps post corrections which you can see under the Article postings tab under Details – posted to Stock and Stock consumption.

5. Create a new stock count for the item, set the counted quantity = 0. Post the stock count.

6. The open value on the item is now reset.

 

4. Items with quantity but a 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 on the item.

1. ⚠️ Before correcting, make sure there are no open sales or purchase orders for the item.

2. Then adjust the item's average price. If the average price is already correct, you can change it by DKK 0.01 up or down. The adjustment is posted to Stock and Stock consumption.

➡️ Read more about stock and average prices

 

5. Negative stock balance

If your item mistakenly has a negative balance, it is typically because your physical stock did not match the system stock, and you have therefore sold more items than were registered.

How to reset the balance:

1. ⚠️ Make sure there are no open sales or purchase orders for the item.

2. Create a stock count for the item with quantity = 1. Enter a date and post.

3. Create a new stock count for the item with quantity = 0.00. Enter a date and post. The balance and value under Order reception/Stock will now be reset.

➡️ See the guide on stock counts

 

6. Incorrect quantity displayed on the item

If you see an incorrect stock quantity on the item card itself (e.g. 0 units), but a different quantity in the item overview or the Historical stock value report, this is simply because the display has not been updated.

This does not affect the postings. The display updates automatically the next time you buy or sell the item. You can also update it manually by clicking Recalculate manually, which only updates the display (without posting).

 

7. Changing the average price

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

You cannot, however, change the average price back to a date before the last physical movement of the item. If you select an invalid date, you will be notified, and the earliest valid date will be shown.

How to do it:

1. ⚠️ Make sure there are no open orders for the item.

2. Go to the Stock management tab on the item.

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. The adjustment is posted to Stock and Stock consumption.

 

8. Items with reserved stock

There is no restriction on selling an item you do not have in stock (overdraft). An overdraft is posted to the Stock consumption and Order reception accounts at the last known average price. At the same time, the Reserved stock column on the item is adjusted.

The Order reception account acts here as a clearing account for the temporary posting of overdrafts.

When the balance returns to zero or positive, stock consumption is automatically adjusted if the new purchase price differs from the previous average price:

• If the purchase price is higher, stock consumption increases

• If the purchase price is lower, stock consumption decreases

You can see which items have reserved stock in the Stock value report.

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