Opening Stock Entry

Opening Stock Entry

Opening stock entry is the process of recording your existing inventory when you first start using EquiBillBook or at the beginning of a new financial year. This guide will walk you through entering opening stock accurately.

What is Opening Stock?

Opening stock represents:

• The quantity and value of inventory you have on hand at a specific date
• Stock that exists before you start recording transactions in EquiBillBook
• The starting point for your inventory tracking
• Essential for accurate stock valuation and reporting

When to Enter Opening Stock

You should enter opening stock:

• When first setting up EquiBillBook with existing inventory
• At the beginning of a new financial year
• When migrating from another system
• When adding new items that already exist in your physical inventory

Preparing for Opening Stock Entry

Before entering opening stock:

1. Physical Stock Count: Conduct a physical inventory count
2. Item Master Setup: Ensure all items are created in the system
3. Cost Prices: Determine the cost price for each item
4. Location Mapping: Identify which items are at which locations/branches
5. Stock Valuation Method: Understand your chosen stock accounting method (FIFO/LIFO/Average)

Accessing Opening Stock Entry

To enter opening stock:

1. Navigate to Items → Opening Stock or Stock Management → Opening Stock
2. Click "Add Opening Stock" or "New Entry"
3. Select the date for opening stock (usually the start of financial year or setup date)

Entering Opening Stock Details

For each item, enter:

• Item: Select the item from the dropdown or search
• Quantity: Enter the physical quantity on hand
• Unit: Select the unit of measurement
• Cost Price: Enter the cost price per unit
• Total Value: System calculates quantity × cost price
• Location/Branch: Select the location if using multi-branch setup
• Lot Number: Enter lot number if lot tracking is enabled
• Expiry Date: Enter expiry date if applicable

Bulk Opening Stock Entry

For multiple items, you can:

• Import from Excel: Use the import feature to upload opening stock data
• Download Template: Get the Excel template with required columns
• Fill Template: Enter item codes, quantities, and cost prices
• Upload: Import the completed template
• Verify: Review imported data for accuracy

Multi-Branch Opening Stock

If you have multiple branches:

• Enter opening stock separately for each branch
• Select the branch before entering stock quantities
• Ensure quantities match physical stock at each location
• Review consolidated opening stock across all branches

Opening Stock with Lot Numbers

If lot tracking is enabled:

• Enter lot number for each stock entry
• You may need multiple entries for the same item with different lot numbers
• Include expiry dates if applicable
• Ensure lot numbers match your physical inventory records

Accounting Impact

Opening stock entry affects:

• Inventory Account: Increases inventory asset value
• Opening Stock Account: Records the opening stock value
• Balance Sheet: Opening stock appears as an asset
• Stock Valuation: Sets the baseline for stock valuation

Ensure proper account mapping in your chart of accounts.

Verifying Opening Stock

After entering opening stock:

1. Review the opening stock summary report
2. Compare system totals with physical inventory
3. Verify quantities match across all locations
4. Check that total values are correct
5. Reconcile with your accounting records

Editing Opening Stock

If you need to correct opening stock:

• You can edit opening stock entries before finalizing
• After transactions are recorded, use stock adjustments instead
• Consider the impact on stock valuation before making changes
• Document reasons for any adjustments

Common Mistakes to Avoid

• Entering incorrect quantities or cost prices
• Forgetting to enter stock for certain items
• Entering stock in wrong units of measurement
• Not accounting for multi-branch stock separately
• Entering opening stock after recording transactions
• Not verifying totals against physical inventory

Best Practices

• Conduct physical stock count before entering opening stock
• Enter opening stock at the start of financial year or setup
• Use Excel import for bulk entries to save time
• Double-check all quantities and prices
• Maintain documentation of physical stock count
• Reconcile opening stock with accounting records
• Review opening stock reports regularly

Need Help?

If you encounter issues with opening stock entry:

• Ensure all items are created before entering opening stock
• Verify stock tracking is enabled for items
• Check that cost prices are entered correctly
• Ensure proper account mapping for inventory accounts
• Contact support if opening stock values don't match expectations

Accurate opening stock entry is crucial for maintaining correct inventory records throughout the year. Take time to verify all entries and ensure they match your physical inventory.