Stock Adjustment Journal Overview
The SapphireOne Stock Adjustment Journal data entry screen has been designed for the adjustment of stock levels and inventory counts. Inventory counts, as referred to stock-takes in some countries, facilitates you to manage your inventory. While an inventory count is being completed, each item in your warehouse facility is recorded and counted. When the inventory count is submitted, your warehouse inventory levels are recorded and updated.
Stock-taking or physical verification wall-to-wall or inventory checking is the material verification of the quantities and condition of the inventory items held as inventory within a warehouse or location. This may be done to provide an audit of existing stock. It is also the source of stock discrepancy information.
Typically, a stock-take may be performed as an intensive end of financial year procedure or alternatively done continuously by means of a rolling stock-take, or sometimes referred to as a cycle count. A cycle count is a periodic inventory auditing process, where you follow a scheduled and repeated sequence of inventory counts on a subset of inventory. Cycle counts contrast with annual stock count of inventory in that a traditional material inventory stops operations at your warehouse or inventory location while all inventory items are counted. Cycle counts are substantially less intrusive and disruptive to daily operations. They execute an ongoing measure of inventory accountability as a procedural verification, and can be curated to focus on inventory of significant financial value, higher movement volume, or that are critical to business processes. Cycle counting is ideally performed in warehouses or locations and is a means of supporting and maintaining an applicable degree of accuracy. Root causes of difficulties can be quickly identified and eradicated in a controlled manner. The effectiveness of the actions can be monitored and reviewed. In contrast, identifying root causes of inventory errors, agreeing on actions to eliminate them to the point of perfecting control processes is virtually impossible with traditional inventory audit approaches. An annual end of financial year inventory stock-take is typically undertaken by the company at the end of the financial year for use in the company’s end of year financial statements being profit and loss, income statement and balance sheet. Including your external auditors is recommended.
Periodic counting is usually performed on less expensive inventory items. Periodic may refer to daily, weekly, fortnightly, monthly, bi-monthly, quarterly, half-year or annual stock-take.
A stock-take sale refers to a sale with discounted pricing in a facility, for example a warehouse sale or a warehouse stock clearance to sell off stock from end of life or discontinued inventory lines. This makes the task of stock-taking easier.
A specific point in time will provide a cut off point that will help determine the stock take level at a particular date and time for your organisation.
The SapphireOne Stock Adjustment Journal data entry screen has been designed for the adjustment of stock levels and/or actual costs per unit, and allows for control of the stock and automatic entry of the opposing adjustments within the General Ledger.
The General Ledger account is the Debit or Credit side to be adjusted against the Inventory Asset Account.
To note before entering a Stock Adjustment Journal Overview:
- If the Stock Adjustment Journal involves negative stock, there is no cost change.
- When Stocktake adjustments are done, they must be posted immediately as these entries are based upon a snapshot of the current stock levels at the date and time of entry.
- The General Ledger Account cannot be the same as the Inventory Asset Account as the Inventory items will be re-valued. Therefore, you will have to create a Stock Variance Account within the Cost of Sales section of your Income Statement.
- For any Inventory Items with an Inventory Type of “Hire” selected you have to use this Stock Adjustment Journal function to get hire stock into SapphireOne. These items will also not be displayed in any Sales or Purchase lists. (The Hire function is part of the POS drop-down menu.)
Any data entry field that has a light blue background is a linked data entry field. If you do not know the exact ID to enter, the user may replace some or all of the characters with the “@” or “?” characters. SapphireOne will then display a much shorter list for the user to select the correct ID from. For example,if the user enters “K@” SapphireOne will display all records beginning with K.
When a data entry field heading is underlined this indicates that once an ID has been entered the user may then click on the underlined heading. SapphireOne will then do a specific query for the ID as entered and display a list with just the single item in it. The user may then view or modify the item as normal.
How to enter information in the Stock Adjustment Journal Details area:
- Notes – Type in any notes.
- Document Paperclip – Scan and attach any documents relating to the Stock Adjustment Journal.
SapphireOne Document Management System (DMS) includes a Paper Clip icon on all data entry and inquiry screens and allows users to attach relevant documents or files to every transaction or record. Additionally, every data entry and inquiry screen within SapphireOne also contains a separate Page specifically for managing documents related to the transaction i.e. version control.
The red colour of the paper clip indicates that there are currently no documents attached to this transaction. When a document has been attached, the paperclip will turn green and the word Items will be prefixed by the number of documents currently attached to this transaction or record.
SapphireOne Document Management functionality can store any type of file or document, and an infinite number of documents may be stored for an unlimited amount of time. Examples of types of documents include Adobe Acrobat, Spreadsheet Documents, Word Processor Documents, Photo Files, JPEG, CSV, HEIF, MP4 files.
Within SapphireOne Master Defaults, there are settings available for the user to restrict the size of each individual document, and also to select where the documents are to be stored – within the data file itself or in a seperate folder. These options may be altered by going to Utilities > Controls > Master Defaults > System Page. Within the Documents area in the right hand corner of SapphireOne Page, there is a provision for the user to set the ‘Document Size Limit’ (the default size is 10Mb). There are also two radio buttons where the user can select ‘Store with Data File’ as part of the data file, and ‘Store as Files’ seperate to the data file.
To attach a document to a transaction, select either the or Paperclip icon and the following Document List window will be displayed.
How to Attach Documents Using SapphireOne Paperclip
Documents can be attached using SapphireOne Drag & Drop functionality. To use this functionality, simply drag a document from the local computer into the Document List screen and it will append automatically. If SapphireOne detects that the document name already exists, a pop-up will be displayed alerting the user. Alternatively, the user can also select the Plus icon to select a document to upload from the local computer.
Once a document has been attached, the user has the ability to rename any document by right clicking on the file and selecting Rename as seen above. Renaming documents will ensure that document names remain consistent across all records.
- Open – When the button is selected, SapphireOne will open the currently selected document for viewing.
- Update – When the button is selected, SapphireOne will display a pop-up which asks the user if they want to Import a New Version of the currently highlighted document. This functionality allows users to update and keep records of different versions of the same document. When the new version has been selected, the user will be asked to enter in a new version number. The new version will now be the document available, and all previous versions will be recorded and available within the History area of Document List screen. The new version of the document will still be linked to any transactions that the old version was.
- Scan – When the Scan button is selected, SapphireOne will access a local or network scanner, and following the usual prompts allows the user to scan a document directly into the data file and link it to the transaction. The appropriate scanner with software must be installed on the local machine or network.
- Save – The Save button allows the user to save the currently highlighted document to the disk.
- Link Documents – The Link Document button allows the user to link the currently highlighted document to another transaction or multiple transactions in the data file. A pop-up will be displayed allowing the user to make their selection. You can learn more about Linked Documents in the Links Area documented below.
- Link Existing Documents – The Link Existing Documents button allows the user to link an existing document in the data file to this transaction or record. A pop-up will be displayed allowing the user to make their selection from a list of documents. You can learn more about Linked Documents in the Links Area documented below.
- Delete – The Delete button when selected will delete the currently highlighted document.
- Plus – When the Plus button is selected SapphireOne will display a search function allowing the user to select a document that is currently on the local computer.
When a document is selected within the Documents area, the Details area will automatically populate to display additional information about the document, including the Title of the document and the Type of file.
The Notes area is for entering any notes related to the document. The user can select the green clock icon to create a time and date stamp for every note added.
The Notes area will also keep an automatic user log when any changes are made to the document. For example, if the document is renamed or new links are created. SapphireOne will record the date, time and user that made the modifications.
Document Details Area
The Document Details area contains additional information relating to the selected document, and will automatically populate when a document is selected from the list. This includes the date and time the document was appended, the document number and the user who added the document.
The History area displays a record of the complete version history of the selected document. SapphireOne keeps track of all version changes and will automatically display the documents history within this area.
The History area will automatically update as new versions of the document are imported when selecting the Update button . When a new document version is imported, all previous versions of the document will be recorded and available to view within the History area. This enables the user to always view the most recently updated version of the document, however still keep a complete record of the document history.
Updating a Document
The procedure for updating a document is as follows.
- When the update button is selected the user will be asked to confirm they would like to import a new version.
- Upon confirmation the user will then be asked to choose the updated document to open.
- Upon selection a secondary dialogue will prompt the user for the entry of an alphanumeric value for the new version.
- Select OK.
The Links area is used to link documents to particular areas or transactions within SapphireOne. The links area can also be used to view all linking information related to the document. For example, if the document was imported using a function with SapphireOne, the links area will have a line containing this linking information.
To add in additional links to a document, select the document and then select the Link Document icon. The Files pop up window will be displayed. From the File drop down menu, select what you want to link this document to. Then within the Value data entry field, enter in the details (ID). As this data entry field has a blue background, it is user searchable by entering the wildcard ‘?’ or ‘@’ symbols.
Document Management using SapphireOne Documents Inquiry
As well as SapphireOne Document Management Paperclip functionality, SapphireOne Documents Inquiry function within SapphireOne Workbook Mode gives users the ability to view a repository of all documents and files stored within the SapphireOne data file. Users have the ability to add New documents, Modify, View or Delete existing documents from within the Documents Inquiry screen.
Any revisions made to a document within the Documents Inquiry screen will be updated across all areas that the document is linked to across SapphireOne, and similarly any modifications made to documents within the SapphireOne Paperclip Document List window will be reflected within the Documents Inquiry window. For example, if a document is renamed within a transaction Paperclip Document List screen, the document name will also be reflected when viewing the document in the Document Inquiry screen.
You can learn more about SapphireOne Documents Inquiry functionality within the Documents Inquiry article.
As an example, we have an inventory item with documents attached (installation instructions and a packing checklist amongst others). We add this inventory item to a sales order, manufacture, ship, completely finish the job. One year later we might have a revision of this inventory item along with all the Documents (DMS). Understandably, we don’t want to have to make a whole new inventory item for the revision, just update the DMS that are attached. We update the inventory item with all the new documents, ready for the next sale. When we refer back to the original completed Sales Client Invoice or Job Projects Client Invoice, we will we see the documentation as it was when the Job Project, Sales Client Invoice or Job Projects Client Invoice was completed, or the documents as they are now. In the example above where we have elected to produce an Order Client Invoice (OCI) with the current installation instructions and packing checklist. This will automatically flow into the finished Sales Client Invoice once the OCI has been delivered.
In the example above we have both the current and historical documents attached. As a SapphireOne user has the ability to edit the list and if they choose not to store the historical document and simply select the Minus button and they can delete the historical document. We also have the ability to modify the existing dociument keeping a log file of each and every time the document has been revised.
SapphireOne’s implementation of both Dictation (MacOS) and Speech to Text (Windows) is a game changer for anybody doing data entry within SapphireOne. Any data entry field that the user can type into using a keyboard, they can use this feature.
They can also use this functionality on all inquiry screens within SapphireOne. For example, the user is in a Contact within a Client and they have just made a phone call to that particular client using the Softphone technology, this will automatically date and time stamp the contact and the phone number you called to. As soon as the call is completed or finished, the user has the ability to use the Speech to Text (Windows) function or Dictation (MacOS) function and dictate into the memo field of the CRM contact, adding as much description as they require.
This functionality applies across every single Data Entry screen. For example, if the user is entering a Vendor Invoice (VI) and they want to add a memo within the Vendor Invoice (VI), the user can simply dictate the memo. Another example is if the user wants to add additional lines to the General Ledger account, within each General Ledger account when the user is completing data entry using a General Ledger, there’s always a unique memo field for each General Ledger account line, the user can utilise this feature to quickly add the information they need to add. Additionally, if you’ve got an interview with an employee and after the interview process is completed the user is able to make notes about the employee.
Speech to Text or Dictation is an extremely powerful tool and it’s something that we at SapphireOne as well as our clients utilise daily. It is a massive timesaver.
Information Tab Area
The Stock Adjustment Journal Information Tab area is used to display extra information about the current entry. You have the ability to view the information here, not alter it.
Click on the Information Tabs to select the details you would like displayed. The Information Tabs change automatically for the different transactions being viewed.
The tabs for this type of transaction include as follows:
- Lines – When a transaction line is selected, this tab displays history of the Inventory item. Included in each transaction is the Quantity and Amount, Sequence N°, Date and Type.
- Create Line – Is for creating a new line and Copy Pricing.
- Inventory – When a transaction line is selected, this tab displays inventory details such as ID, Name, Available Stock, Allocated Stock, Stock on Order, Stock on Back Order and Standard Price.
- Items – When a transaction line is selected, this tab displays additional inventory details.
- Controls – This tab displays information about the transaction such as the date it was created and who created it.
- Error Code – Displays any error code such as negative stock, batch error and period error.
Hiring Inventory Items
- Any Inventory stock that has its Type set as Hire is treated differently to all other stock.
- It is not displayed in any Sales or Purchase lists so that the user is unable to directly Purchase Hire items directly into Stock. This also means that accidental Selling or Purchasing of these items is also eliminated.
- Once the stock has been purchased as a normal Inventory item this Stock Entry function is used to transfer normal stock into the Hire Stock.
- Before transferring any Inventory items that are to be hired a second Inventory item with a type set as Hire has to be created. That means that for any Inventory item that hiring is planned for will have Two ID’s, One for normal Purchasing and Selling, and another for Hiring.
- Inventory valuations should also be considered when transferring stock as the new stock that has never been purchased or sold, will have no Last Cost or Price. These will have to be entered manually.
The Stock Adjustment Journal Tracking Details area stores tracking details about the transaction. These details include:
- Date In – Is the date that this Stock Adjustment Journal has been entered on SapphireOne (usually SapphireOne date).
- External Reference – External reference number.
- Ref No – Internal reference number.
- Period – Period matching the date, set in company controls.
Transaction Lines Area
The Stock Adjustment Journal Transaction Lines area contains three data entry lines and a transaction summary area. The three data entry lines consist of:
- The 1st line is for the Inventory ID, Inventory Details, GL ID.
- The 2nd line has Stocktake quantities, difference, rate, new cost, total and project
- The 3rd line has weight area, pallet and 2nd unit details.
As you enter a transaction, a summary of the transaction appears in a single line in the transaction summary area. You can view or modify a line by selecting it, then proceed to view or modify in the data entry area above.
How to enter details in the Stock Adjustment Journal Transaction Lines area:
- Inventory ID – is a linked field and the User can use the Wildcard options to search for the Inventory ID.
- Stock Quantity – Allows for the changing of the stock quantity.
- Difference – is the difference between current stock and the stock take. Either positive or Negative –minus.
- Inventory Details – Once the ID is entered SapphireOne will display the Inventory description or name.
- Rate – Is the current actual cost per item.
- New Cost – Field allows for the changing of the current cost per item.
- Total – This is the total cost for each individual line item including any tax.
- GL ID – Is a general ledger (GL) ID.
- Project – Is a linked field and the User can use the Wildcard options to search for the Project ID. SapphireOne will display the Project Name once a valid Project ID has been entered.
- Weight Area – This field displays the total weight or area x order quantity. The user may enter the total weight required which will automatically update the order quantity.
- Pallet – Displays the pallet quantity: quantity multiplied by the pallet quantity set in Inventory details.
- 2nd Unit – Displays total 2nd unit: quantity multiplied by 2nd unit quantity set in Inventory details.
All of the lines in the Transaction Lines area, are listed here. The list itself, only displays the basic details of each Line. You cannot directly edit from this list.
To view or modify any line in this Line Listing area, select or highlight a line.
All of the additional data entry fields will then be displayed for you immediately above the list of lines.
From there the user is able to view or modify all of the data entry fields for the line as required.
The easiest way to add a line is with the keyboard shortcut. Hold the (Command or Control key down and select forward slash (/). SapphireOne will then place the cursor in the Account ID data entry field ready for the entry of a new line. Alternatively, selecting the button will also place the cursor in the Account ID data entry field, ready for the entry of a new line.
Lines may also be added to the transaction by clicking on the button or selecting the button to delete the currently highlighted line.
Transaction Footer Area
The Stock Adjustment Journal Transaction Footer is the information bar along the bottom of the screen, and allows the user to easily check critical details of the transaction.
These details include:
- Sequence – SapphireOne will generate a unique sequence number for this Stock Adjustment Journal.
- Tag – The user may mark this transaction using a Tag if required.
- Access to More Functions Button –
- Export Lines – Export Lines allows the user to export the lines from any inventory or job project base transactions. This allows the user to export lines, then the client or vendor receives an email with a text file attachment, which they can then import into their SapphireOne ERP.
- Discount – Allows for the generation of an overall discount on the transaction based on either a fixed dollar value or a percentage.
- Zoom for Current Linked Record Button – Clicking on the icon once minimises the header for a reduced screen view showing only transaction lines. The icon will then change to maximise, and by clicking on it again it will return the screen to the standard view.
- Note that a tag of HOLD is hardwired into SapphireOne. When it is selected the transaction may not be posted until the tag status of HOLD is removed or altered to something other than HOLD.
- Most of the Tag Headings are user configurable.
- The Tag Headings may be re-named by going to:
Utilities \ Controls \ Master Defaults \ then select the appropriate functions Page
- The Tag Headings may be re-named by going to:
- All of the items in the Tag drop down lists may be created by the user.
- The drop-down menus are created by entering in an item not on the list, then (tab away). SapphireOne will ask if you want to add the new tag to the list.
- To remove a tag, hold the Control or Command key down and then select it. You will be asked if you want to remove it from the list.
SapphireOne checks that each transaction entry is complete and balanced before allowing any saving operation. When the Out of Balance is 0.00 the tick, will activate in the top tool bar indicating to the user that the transaction is ready to be saved. When more than a single transaction is selected, Blue will also be displayed on the main toolbar. See below for additional details.
You can save your Transaction in one of three methods:
Select the Tick when it is activated. This will save the current transaction and return the user to the main tool bar or the list.
When multiple transactions have been selected the user may click on the tick on the tool bar with the results as seen as above.
Click on either of the the Arrows. This will tell SapphireOne to save the current transaction and open the next transaction in the list ready for data entry or modification. Also note that for what ever page is open in the transaction SapphireOne will move to the next transaction displaying the exact same page. I.e. Terms page to Terms page. Very handy when checking the same data in multiple items.
Selecting the Enter Key on the keypad. SapphireOne will then save the current transaction and opens another transaction of the same type ready for data entry. Very handy when entering multiple transactions of the same type. I.e. Client Receipt, Client Receipt.