I’m trying to identify the cause of an unexpected valuation difference in a production.
We have create a Stock Entry of type Manufacture to reflect the production of 5 items.
There are only “source items” and no additional costs.
I have been explained by our accountant that in this case, the operation should be reflected on the accounting books as crediting the value of the items from the “parts inventory account” and debiting the same value on the “finished inventory account”.
However, we are also getting an unexpected difference as shown on the image below:
We would like to trace the reason of that difference. I guess we can take every “source item” on the General Ledger and check their history. However that would be quite consuming in this case as there are about 53 items.
What would be the correct procedure to identify the cause of that unexpected difference?
While I haven’t solved a way to trace the difference on Stock Entry for our inventory, I have been investigating what may have cause it.
Here there is a previous posts about it. I understand there is an argument about ERPNext not updating the valuation on Purchase / Receipt / Stock Entry:
Wouldn’t the problem be that some of the items in the Manufacture entry are being expensed to the wrong account? The most correct procedure would be to check every line item individually or write an SQL query that finds you the specific information you need.
Just find whichever items in that stock entry that are getting expensed to 7110.
All of the items have that 7110 account set for the difference account. The issue is that this value should be zero for all of them, as this “Manufacture” on only consumes the items to produce another.
I guess the route is to produce Database queries to see the valuation for every item checking every transaction history. But I guess that kind of a common audit not just for my case.
