openerp-expert-accounting team mailing list archive

[Laurie Chrostowski <lchrostowski@xxxxxxxxxxxxxxxxxx>]

I have spent a bit of time learning the double entry workflow related to
stock within OpenERP and would like to validate with the group the set
up for valuing stock in my existing database.  We are not using the
anglo-saxon module and are in version 6.0.3.

Stock Journal - in the database I am working in I have Accounting Stock
Accounts configured on the product category for use with the stock
journal.  The stock input account is Inventory Purchases (an asset
account) stock output account is Cost of Goods Sold (P&L account) and
stock variation account is Inventory (an asset account).  Journal is
Stock Journal.  When a purchase order is created and the products are
received I see entries in Inventory Purchases (CR) and Inventory (DR).

The Accounting Accounts set up in the product category is the Income
account = Revenue/Income and the Expense account is set to Inventory
Purchases.  I have found this is necessary to have the purchase journal
post the DR to offset the CR posted by the Stock Journal.

Purchase Journal - when the supplier invoice is created the entries are
Inventory Purchases (DR) and Accounts Payable (CR).

Finally with the Sales Journal - when a sale is made and the items are
picked there is a DR to Cost of Goods Sold and a CR to Inventory.

I would like to confirm that this is the best way to handle the
configuration.  The Inventory Purchases account is something I had not
experienced previously (it was already set up in the db I am working in)
and I am wondering if the group has seen the double entry stock
accounting accomplished in a different way.

Thank you in advance for your time.
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