Managing Opening and Closing Stock in Merciglobal Cloud ERP¶
Accurate stock valuation and representation is crucial for seamless financial reporting in Merciglobal Cloud ERP. This guide explains the rules and procedures for managing Opening Stock and Closing Stock without violating accounting principles within the ERP.
Stock Entry Rules¶
⚠️ IMPORTANT: Violating these rules will lead to discrepancies in your financial statements.
| 🔒 Rule No. | Description |
|---|---|
| 1️⃣ | Opening Stock and Closing Stock accounts cannot have an opening balance. |
| 2️⃣ | Any account appearing in Manufacturing, Trading, or Profit & Loss (Income/Expense) must not have an opening balance. |
Managing Opening Stock¶
Opening stock should not be directly added through an opening balance. Instead, it must be transferred using a Journal Entry at the start of the financial year (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.
💡 Tip: This ensures accurate P&L and balance sheet structure in accordance with accounting standards.
Managing Closing Stock¶
Closing stock values should be entered through the system interface or optionally using a journal entry.
Option 1: Through Menu¶
Navigate to:
Transactions → Accounting → Closing Stock
Option 2: Journal Entry Format:¶
| 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 closing stock reflects correctly in the balance sheet and aligns with the trading account closing.
Who Should Follow This Guide?¶
- Merci Customers: Ensuring your financial books are compliant
- Merci Developers: Maintaining system rules for journal entries
- Merci Sales Team: Explaining ERP compliance benefits to prospects
Benefits of Following the Proper Process¶
- 📊 Accurate Financial Reports
- 🧮 Correct Profit/Loss Computation
- ✅ Audit Ready Books
📚 For more details, refer to the official Merciglobal Cloud ERP Documentation.
Need help? 💬 Contact our support team or reach out to your Merci ERP Consultant.