How to post Stock in Management Accounts

Introduction

This topic explains the requirement of Management Adjustments and more specifically how Closing Stock should be treated.

• All users should have completed the Management Accounts Tutorial and/or attended an IRIS Training Course on Management Accounts prior to preparing Management Accounts.

Click the links below to jump to a particular section:

Posting

Closing Stock

Management Adjustments

Management adjustments are merely accounting entries, which are posted so that meaningful accounts can be produced at interim points during the financial year. For this reason they are kept separate from the usual postings and are entered into a Management Account Adjustments screen. This screen is accessed by clicking the Management icon within the Posting screen and selecting the relevant period.

Posting

If Closing Stock is to be posted to Cost of Sales on the Profit and Loss Account please proceed to Closing Stock – Cost of Sales. If Closing Stock in the Profit and Loss Account is to be netted against Sales or Purchase please proceed to Closing Stock – Sales/Purchases.

Closing Stock - Cost of Sales

• When Closing Stock is posted to Cost of Sales on the Profit and Loss Account, Stock will show separately.

1. From the Accounts Production toolbar, select Posting | Select

2. Highlight the relevant post file and click OK.

The Posting screen displays.

3. Click the icon.

The following screen displays.

4. Highlight the relevant period and click Select.

The following screen displays.

5. In the Document Type field, enter 0 and click OK.

The Management Account Closing Adjustments screen displays.

6. Make the following postings:

   Nominal description	A/c No	Dr	Cr
   Closing Stock (P&L)	74		5000
   Closing Stock (BS)	569	5000

7. Close the Management Account Closing Adjustment screen.

8. Repeat steps 1 to 7 for each period EXCEPT for the final period.

• In the final period the Management Adjustment screen should NOT be used. Year-end adjustments form part of the annual accounts and should therefore be posted in the normal posting screen.

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Closing Stock - (Sales/Purchases)

• When Closing Stock in the Profit and Loss Account is netted against Sales or Purchases a different method of posting needs to be used to enter the stock in the Management Adjustment screen.
  
  A new Document Type is requires which will be used to post the Closing Stock Adjustment. This only needs to be carried out once. The document type will then be available for all clients on the system if required.

1. Select Setup | Document Types

The following screen displays.

2. Select the Management Adjustments tab and click New.

The following screen displays.

• The Index field will automatically display no 19. However, the Index number used may be different if document types have previously been added to the database.

3. In the Mnemonic field enter MGT.

4. In the Description field enter Management stock non P&L a/c.

5. In the Properties section, select the Automatically reverse on the next opening balance (OBL) option.

6. Click OK then Cancel.

The following screen displays.

7. Click Cancel.

8. Select Posting | Select

9. Click OK.

The Posting screen displays.

10. Click the Management icon.

The following screen displays.

11. Highlight the relevant period and click Select.

The following screen displays.

12. Enter 0 in the Document Type field and click OK.

The Management Account Closing Adjustments screen displays.

13. Make the following postings:

14. Click the icon.

The following dialog displays.

15. Click Yes.

16. Enter 19 in the Document Type field.

• The Index number used may be different if document types have previously been added to the database. The Index number that should be used is the number created in step 6.

The Management Account Closing Adjustments screen displays.

17. Make the following postings:

6. Nominal description	A/c No	Dr	Cr
   Closing Stock (P&L)	27		5000

18. Close the Management Account Closing Adjustment screen.

19. Repeat steps 1 to 9 for each period EXCEPT for the final period.

• In the final period the Management Adjustment screen should not be used. Year-end adjustments form part of the annual accounts and should therefore be posted in the normal posting screen.

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