I plan to settle a transaction by paying with stock-in-hand to an outstanding supplier. However while doing a journal entry I can proceed till Account Column and select “Cash-in-hand”. After that I dont see an option to select any particular stock in the PartyType and Party columns. Screen below
The dropdown prompts to create a new docType. Is it possible to use journal entry to adjust stock ?
Nope. But if you have perpetual inventory turned on and seems like you do, a stock entry will automatically have an impact on your accounting ledger.
You could use Stock Entry Purpose: Material Issue and issue out the material. You could use the account you mentioned in your mail in the Difference Account.
Trust this helps!
Thanks a lot for your reply.
A correction first. What I referred to as “Cash-in-hand” in my question is actually “Stock in hand”.
Second. I did not get this part “You could use the account you mentioned in your mail in the Difference Account.”
Whenever I do a issue of material my stock will fall down. How do I associate this reduction in stock with payment to a particular vendor.
Are you saying that instead of giving a Supplier Money, you are going to give the supplier some stocks? Is it stocks that the Supplier Delivered for which you have a transaction on ERPNext? Or is it stocks that the supplier didn’t deliver and/or the transaction does not figure on ERPNext?
If the stock transaction from Supplier exists on ERPNext: Can’t you do a Purchase Return?
If the stock transaction from Supplier does not exist on ERPNext: Please consider using a Sales Invoice or a Delivery Note and you can move the amount from the Receivables to the Payables manually by a Journal Entry so that you diminish your payable to the supplier for the value of this transaction.
I hope I am on the right track.
Apologies if I am not. But conceptually the above content is valid.
Thanks Jay. You are bang on target.
The case is that the supplier did not deliver that material. Hence I cant do a purchase return.
However the product was brought from another party and resides on ERPNext as stock in hand.
In the second option you mentioned I believe a Debit Note makes more sense than a sales invoice. However, how does doing a Debit note reduce my stock and the payable to a supplier ?
I am sorry but I did not quite get what you proposed.
A Sales Invoice cum Delivery Note is best. That will create a Receivables Entry for the “Customer” (on ERPNext, you can’t have a common account. You need to set up the party as both a customer and a supplier). Reverse that and move it to Payables and you are good to go.
Alternatively do a Delivery Note and then do a Debit Note.
Or do a Stock Entry Purpose Material Issue and use any expense/difference account. And move that from that account to the Payables account.
I don’t mean to be offensive, but if you still need help, it’s easier for me to do it for you. Please find a service provider that can help you with this and engage him or her for this.
Thank you so much for your help ! For now I am looking to improve my skill set in ERPNext and hence would not like to outsource.
I would fully understand if you are not able to help any further.
Thanks & Regards
Good. Then hold onto your intellectual curiosity and figure out how to do things. These is enough information here on the forums and on the videos.
Good luck with your journey!