The Stock provision option enables you to allocate a provisional value against a part or parts that represent the value that will eventually be written off using the standard stock adjustment processes. Alternatively the system can be set up to write off stock immediately, and directly amend average costs as part of the process of running this option. Please review the help topic Stock Management system parameters for details of the relevant parameter settings in order to do this.
To access the Stock provision form:
From the Stock Management Miscellaneous menu select the Stock Provision option.
The Stock Provision form is displayed.
This form is displayed when you select the Stock Provision option from the Stock Management miscellaneous options menu.
It is important to know and understand the key differences between the different available modes before running this program.
Type 1: Stock provision by percentage. When run as an update, the calculated values based upon the percentage entered for each part concerned are posted to the Nominal ledger using the Cost centre and expense code defined in the stock management system parameters, Stock provision account code. The Stock provision journal type also defined there is used as the journal type for the Nominal ledger postings made. The value and the date when this update takes place are both written to the parts records concerned. It is possible to re-run this type of update for the same parts many times. If this is done the previous postings are reversed and new postings for the new values are written. Additionally the value and date on the parts stock records are replaced with the new values and date. The average cost and stock valuation of the parts are not affected by this type of update.
Type 2: Stock write-off by percentage. When run as an update, the calculated values based upon the percentage entered for each part concerned is posted to the Nominal ledger using the Cost centre and expense code defined in the stock management system parameters, Stock write-off account. In addition to the postings being made to the nominal ledger the Average cost of the part or parts is replaced with the new calculated value or values and the stock valuation reflects this. It is possible to run this type of update more than once against a part or parts but doing so will merely make more postings to the Nominal ledger and reduce the average cost value and stock valuation further.
Type 3: Stock write-off to a nominal amount. In essence this is the same as type 2, with the difference that the Average cost is set directly to the figure entered for the part or parts selected.
Warning: Exercise extreme caution before using type 2 or type 3 updates as the results cannot be reversed once the update has been carried out.
Stock provision/write-off
The label name and input type of the first field on this form reads and operates differently according to the setting of the Stock management system parameter Stock provision/depreciation type.
If the parameter is set to type 1, Stock provision by percentage, the label reads Stock Obsolescence Provision. The input is a percentage, for example 10.00 to make a stock provision of 10% of the stock value of the part or parts subsequently selected.
If the parameter is set to type 2, Stock write-off by percentage, the label reads Stock Depreciation. The input is a percentage, for example 10.00 to make a stock depreciation of 10% of the stock value of the part or parts subsequently selected.
If the parameter is set to type 3, Stock write-off to a nominal amount, the label reads Stock Write-off. The input, Value, is a direct average cost value that you want to set against a part or parts. For example an entry of 25.1102 would directly set the average cost of the part or parts involved to this value
Selection
Location: Defaults to all locations. Use the drop-down to select a single parts location for inclusion. The location field is only available for selection if type 1 updates are being carried out. Type 2 and 3 use all locations and do not allow selection to be made.
Part number from: Part number you want to start from.
Part number to: When the From part has been entered the to part number field is populated with the same part number. You can replace this to select a range of parts to be included in your selection.
Last purchased/sold/moved: This field is labelled either Last purchased, Last sold or Last moved according to the setting of the Stock provision date type on the stock management system parameters, Other details tab. The date entered here is compared to the date type being used on each part record. If the date on the part record is equal to or greater than the date entered a match is made, providing all other selection criteria are met.
Product group: All groups are selected by default. Use the ellipsis button to toggle select/deselect groups.
Franchise: All franchises are selected by default. Use the ellipsis button to toggle select/deselect franchises.
Analysis code: Specific analysis codes if required, or blank to include all.
Cost price from: Minimum average cost held against parts to be included.
Cost price to: When the from cost price has been entered the to cost is populated with the same value. You can replace this to create a range for selection.
Action
Option Buttons:
Calculate & Display Audit Report: Select to calculate the results of the selections made and display for review without updating.
Calculate & Print Audit Report: Select to calculate the results of the selections made and print a hard copy of the audit report for review without updating.
Calculate, Update Records & Print Audit Report: Select to calculate the results of the selections made, perform the update and print a hard copy of the audit report.
Buttons:
Exit: Exits the program and returns to the Stock Management miscellaneous menu.
Process: Processes the selections made and carries out the action of the option button selected.
Help: Displays this help topic in your current browser.
When you process the selections the displayed or printed report lists all parts that match all of the criteria entered. The results are displayed or printed in the following order. Franchise code followed by Analysis code with subtotals for each analysis code with the franchise further subtotaled, and finally the Grand Totals for all selections. The report shows each part number and its description, the current stock quantity, the appropriate date, franchise, analysis code, current average cost and total current stock valuation. The percentage or Value entered is displayed according to the update type being used. If a stock provision is being made the relevant calculated value is shown. If a write-off mode is being used the New average cost is displayed in the adjacent column and additionally a Write-off value is reported. Finally the printed hard copy produced as a result of completing an update shows the Post date and NL journal/document number used.
Stock Management system parameters
