Stock Opening effect at P&L Satement

ERPNext
1

Hi @NCP Hope you are fine.

I have created an item with opening stock 10 @ rate 35000.

OP stock1
OP stock11362×771 45.1 KB

at this stock ledger and P&L statement shows:
P&L St.1
P&L St.11682×786 42.5 KB

stock ledger2
stock ledger21627×554 40 KB

Then I sold 3 units @40000=120000

Sales Inv.1
Sales Inv.11305×466 21.8 KB

stock ledger1
stock ledger11666×551 47.3 KB

P&L statement
P&L statement1897×866 48.6 KB

It looks profits overstated.
Is there any setting to enable to show correct profits (15000) while selling 3 units (120000-105000=15000)?

Unless I sell all 10 units, p&L statement shows profits are overstated (Expense figure in negative).

final P&L
final P&L1676×794 42 KB

Guide Please. Thanks

2

Hi,

If you enter opening stock while creating Item code in ERPNext will pass the Journal as below:

Inventory Account Debit (In Your Case 35000 x 10)
Profit & Loss Account Credit (In Your Case 35000 x 10)

When you make the Sales Journal is created as follows:

Inventory Account Credit (In your case 35000 x 3)
COGS Account Debit (In Your Case 35000 x 3)
Revenue Account Credit (In Your Case 40000 x 3)
Customer Receivable Account Debit (In Your case 40000 x 3)

Now, if you calculate the Total profit, Profit from Sales is 15000 + Profit for the Stock Opening is 350000

Normally, you should bring the Opening stock via Stock Reconciliation Tool by selecting purpose “Opening Entry”

More information about Stock Reconciliation Tool is here: https://docs.erpnext.com/docs/v13/user/manual/en/stock/stock-reconciliation

Thanks,

Divyesh Mangroliya

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