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Stock Adjustments

The Stock Adjustment program in MDS allows users to update stock volumes at an individual level. The user chooses the relevant item and then enters the number of items to be added or written off. Micronet values the items added or written off at the average or standard cost and transfers these amounts from Stock on Hand in the Balance Sheet to the Cost of Sales section of the Profit & Loss.

For example, say the average cost of an item is $10.00. There are 10 items on hand and two items are scrapped due to damage. Stock is valued at $100.00. Upon posting a stock adjustment of -2, Micronet generates the following entries for the General Ledger:

Debit 116 Stock Adjustments $ 20.00 Increase Cost of Sales Average Cost
Credit 115 Stock on Hand $ 20.00 Decrease Current Assets Average Cost