How do I enter stock held when setting up my opening balances?
This article is for churches and charities that account on an accruals basis.
If your charity or church holds a value of stock at year-end (prior to your ExpensePlus system start date) then you will need to set this up within your Opening Balances when setting up ExpensePlus.
1. Record stock as a prepayment
As 'stock' is a current asset, not a fixed asset, it is best shown as a prepayment within any financial year.
This is because you have paid for the items within the stock already, but you may not account for the value of the sale until a future financial year.
When setting up your opening balances, you will need to record any stock shown on your balance sheet for your prior financial year in the 'prepayments' box on the opening balances screen (not the fixed asset box).
2. Reverse the prepayment
Then, at the end of each financial year, you should reverse the current stock balance from the prior financial year here (dated the last day of that financial year).
Then add a new prepayment for the retained value of any stock to carry-forward, as of the same date.
You can also do this monthly rather than annually if you prefer.
The above mechanism will mean stock held will show as a current asset on your balance sheet and in your other financial reports.
To help you better understand the Adjustments module as a whole, please visit the module overview page here.