Periodic Inventory in Attaché is a method of inventory management where you calculate your cost of goods sold for a period in the Profit and Loss account for the period. This method in its simplest form does not allow the cost for a specific sale to be calculated and does not use the Attaché Products Module.
Cost of Goods Sold is calculated in the Profit and Loss as follows:
Opening Stock + Purchases - Closing Stock = Cost of Goods Sold for the period.
To run this method you need to:
Post all purchases of stock to the Purchases account/s.
Perform a stocktake at period end.
Post one or more Closing Stock entries for the closing period and Opening Stock entries for the new / next period.
The Closing and Opening Stock entries MUST:
Be made for every period, even if the period is NOT used, otherwise the Trial Balance will not balance.
Be equal to each other between the closing and next periods. That is, if closing stock is $100,000 in P2, then the opening stock for P3 must be $100,000.
The Closing Stock entries should be in the following format:
Dr Stock on Hand / Inventory (Balance Sheet)
Cr Closing Stock
The Opening Stock entries should be in the following format:
Dr Opening Stock
Cr Stock on Hand / Inventory (Balance Sheet)