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How do I close the inventory period at month end?

When every stock document and landed cost of the month is in and no inventory-impacting vendor invoice is parked, save an Inventory Closing of type Inventory Closing for the period. It settles the cost of every issue and closes the period.

Screen
Inventory Closing
Who
The cost accountant
Takes effect
When the run Completes
Needs first
The Closing Journal on the Inventory Control Setting

Before you start​

  • All receipts, issues, returns, transfers and landed costs of the month are saved.
  • No vendor invoice whose cost elements reach inventory is parked: post or cancel it on Vendor Invoice (see How do I post parked documents?).
  • Tell the warehouse: no stock document can be saved while the closing runs.
  • The month end of the accounts is in General ledger: see Month-end close.

Steps​

  1. Open Inventory Closing and press New.
  2. Pick Financial Year, Financial Period and Type Inventory Closing. Leave Item No and Item Group empty.
  3. Save. The run starts; watch Stage and State.
  4. If it Stops, read Response, fix the cause, press Reprocess.

Check it worked​

  • State is Completed; the period's inventory status is Closed.
  • Item Trial for the period shows issues at the settled cost.
  • Trying to save a stock document dated in the period answers "Inventory is Closed of this Period".

What posts​

The settlement documents post each issue's cost difference between the accounts that issue originally posted to. Undoing is Reverse closing on the toolbar of the newest Completed closing.

If something looks wrong​

  • "Vendor Invoice ... is in Park and its cost element impacts Inventory..." - post or cancel it, then Reprocess.
  • "Inventory Closing Journal is not defined" - fill it on the Inventory Control Setting.