📦 Managing Opening and Closing Stock in Merciglobal Cloud ERP
Accurate stock valuation is essential for generating correct financial statements in Merciglobal Cloud ERP. This guide outlines the compliance-friendly approach to handling Opening Stock and Closing Stock based on ERP accounting standards.
📏 Stock Entry Rules
⚠️ IMPORTANT: Disregarding these rules may lead to incorrect financial reporting.
| 🔒 Rule No. | Description |
|---|---|
| 1️⃣ | Opening Stock and Closing Stock accounts must not have an opening balance. |
| 2️⃣ | Accounts under Manufacturing, Trading, or Profit & Loss must not carry opening balances. |
🧮 Managing Opening Stock
Opening Stock should not be added via opening balances. Instead, perform a Journal Entry on 1st April.
📘 Journal Entry Format
| Date | Transaction | Amount |
|---|---|---|
| 1st April | Opening Stock A/c (Dr) To Stock In Trade A/c (Cr) |
₹999,999.99 |
📝 Narration: Being transfer of opening stock from Stock In Trade A/c to Opening Stock A/c.
💡 This maintains proper P\&L structure and aligns with accounting norms.
📦 Managing Closing Stock
Closing Stock must be entered correctly to reflect accurate year-end balances.
Option 1: Use ERP Interface
Navigate to:
Transactions → Accounting → Closing Stock
Record the value as of 31st March.
Option 2: Use Journal Entry
| Date | Transaction | Amount |
|---|---|---|
| 31st March | Stock In Trade A/c (Dr) To Closing Stock A/c (Cr) |
₹999,999.99 |
📝 Narration: Being transfer of closing stock to Stock In Trade A/c.
🔄 This ensures the stock value is visible in the balance sheet and aligned with trading accounts.
👥 Who Should Follow This Guide?
- Merci Customers – Ensure compliance with accounting principles
- Merci Developers – Enforce ERP stock rules through validations
- Merci Sales Team – Demonstrate audit-readiness to potential clients
✅ Benefits of Following the Standard Process
- 📊 Accurate Financial Reports
- 🧮 Proper Profit/Loss Computation
- 📂 Audit-Compliant Books
📚 Need more insights? Visit Merciglobal Cloud ERP Documentation
💬 Questions? Reach out to our support team or your assigned Merci Consultant.