How to use Difference Account in Stock Entry?


I can’t seem to understand how this works.

I am manufacturing stuff with a BOM with an operation which has a cost.

When I make the “manufacture” stock entry I can see a value in “Total Value Difference (Out - In)” which I have assigned to an account:

But when I go to that account I see nothing:

What am I doing wrong?

Thank you in advance,


Refer Following link,i think it will be helpful.

Hello @shraddha,

Thanks for your links. I read them and they explain indeed how to use the difference account. I also saw the video there and I’d say I’m using the difference account as explained there (although in the manufacturing context) but somehow then I don’t see any value in the account.

Every time I manufacture a BOM I have an operation which is the labor (in minutes, valued in €). I would like to:

  • keep an account of the amount of labor (in €) spent in all these operations
  • have that same amount appear as stock valuation since it’s value added to the finished goods (being now part of their costs)

And I still don’t understand how this can be done :frowning2:

Please help! Thanks.


Hi @shraddha, I read again the link you provided and I think I found something.

At some point it says “make sure you have enabled Perpetual Inventory by checking Stock Settings page.”

I have tried to do this and now I can see the stock valuations reflected in the accounts. This is probably what I want.

Still I am intrigued. Because now, when I manufacture, even though I set account “Salary” in the differences account, the difference amount was posted in the account “Expenses Included In Valuation”.

So I still don’t understand why that field isn’t taken into account.

Thanks again,