In perpetual accounting, system creates accounting entries for each stock transactions. Hence, stock balance will always remains same as relevant account balance.
2. The system will create an account head for each warehouse. Enter "Create Account Under" (account group under which account will be created) in warehouse master, based on type of items it stores (Stores, Fixed Asset Warehouse, etc).
Migration from Periodic Inventory is not a one click settings, it involves some special steps. As Perpetual Inventory always maintain a sync between stock and account balance, it is not possible to enable it with existing Warehouse setup. You have to create a whole new set of Warehouses, each linked to relevant account.
>Note: System will not post any accounting entries for existing stock transactions submitted prior to the activation of Perpetual Inventory as those old warehouses will not be linked to account.
>Suppose you have purchased *10 quantity* of item "RM0001" at *$200* and *5 quantity* of item "Desktop" at **$100** from supplier "East Wind Inc". Following are the details of Purchase Receipt:
As stock balance increases through Purchase Receipt, "Store" and "Fixed Asset Warehouse" accounts have been debited and a temporary account "Stock Receipt But Not Billed" account has been credited, to maintain double entry accounting system.
>On receiving Bill from supplier, for the above Purchase Receipt, you will make Purchase Invoice for the same. The general ledger entries are as follows:
Here "Stock Received But Not Billed" account has been debited and nullified the effect of Purchase Receipt. "Expenses Included In Valuation" account has been credited which ensures the valuation expense accounts are not booked (debited) twice (in Purchase Invoice and Delivery Note).
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### **Delivery Note**
>Lets say, you have an order from "Jane Doe" to deliver 5 qty of item "RM0001" at $300. Following is the details of Delivery Note:
As item has delivered from "Stores" warehouse, "Stores" account has been credited and equal amount will be debited to the expense account "Cost of Goods Sold". The debit/credit amount is equal to the total buying cost of the selling items. And buying cost is calculated based on valuation method (FIFO / Moving Average) or serial no cost for serialized items.
In this eample, Buying cost of RM0001 = (2200/10)*5 = 1100
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### **Sales Invoice with Update Stock**
> Suppose you do not want to make Delivery Note against the above order, you can make Sales Invoice directly with "Update Stock" options. The details of the Sales Invoice are same as above Delivery Note.
