The following support note describes how to create a Month-End/Month-Start valuation journal for Balance Sheet reporting of an Inventory Asset amount.
On the LAST DAY OF THE MONTH or last trading day of the month a Stock Valuation Report must be created from WMS and sent to EXCEL.
From Datapel WMS choose the Reports Menu, Stock, then select Valuation Report.
Choose a VALUATION Method. If using Standard Cost make sure ALL ITEMS have been setup with a standard cost figure.
Click on Generate Report.
The Valuation report needs to be broken down by Cost Accounts. Click on the EXPORT REPORT icon (Top Left) and select EXCEL Application as shown below.
Click OK and the report information will appear in EXCEL.
It is now necessary to create a valuation subtotal by COS Account.
In Excel SELECT ALL records by clicking in between the A Column and Row 1 cell (this is the top left of the spreadsheet with a small dog-ear). Now click on the SORT and FILTER option – then choose FILTER.
Click on the Expense/COS selection arrow – click the SELECT ALL checkbox to remove all check marks – then select ONE Expense/COS account. The screen will show only those items relating to this account – calculate the VALUATION SUB-TOTAL for this account and record it on another sheet against the account number selected.
REPEAT THIS PROCESS FOR EACH Expense/COS account.
Once complete verify the TOTAL valuation by account checks against the TOTAL VALUATION AMOUNT.
Each sub-total amount will be required when creating the MYOB Inventory Valuation Journal.
Each sub-total amount will be required when creating the MYOB Inventory Valuation Journal. Open MYOB and select RECORD JOURNAL ENTRY.
Enter the MEMO as END-OF-MONTH Valuation and record each amount from the Valuation by Account as shown. The total is then posted against an Inventory Asset account as shown.
Be sure to enter a MEMO per line (recommended as EOM-Valuation) and set TAX as N-T.
Once the journal is recorded the Asset account will reflect the value of Inventory OnHand.
Balance Sheet and End-Of-Month reports can now be run to reflect correct Nett Inventory Asset position of the GL.
Reversal of End-Of-Month Valuation.
In order to maintain P/L reporting the valuation Journal needs to be reversed. This journal should be posted on the 1ST of the month and the MEMO comment Valuation-Reversal as shown.
This procedure should only be followed by suitably qualified MYOB operators. In order to create accurate Balance Sheet reports from MYOB if items are Inventoried in WMS only a Month End/Month Start journal must be processed.
This information is NOT accounting advice and Datapel makes no guarantees as to accuracy or suitability of this procedure for every business.