Book stock vs physical stock

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 April 2016
DEAR SIR./MADAM

AS ON 31.3.2016 PHYSICAL STOCK (PSV) OF GROUND IS 990000 MT WHILE IN THE BOOKS (RG) STOCK WAS 100000 MT THE DIFFERENCE OF 10000 MT BETWEEN PHYSICAL STOCK AND RG , HOW IT IS TREAT . PYSICAL STOCK TAKEN ON L*B*H= V*DENSITY BASIS , STOCK IN HUGE QUANTITY . NOT TO MEASABLE ON ACCURATE BASIS.

IN RG MAINTAIN
OPENING STOCK + PRODUCTION -DESPATCHES-INTERNAL CONSUMTION =CLOSING

NOTE : DAILY PRODUCTION DECLARE ON MATERIAL SHIFTED FROM PRODUCTION DEPARTMENT TO SALEABLE DEPARTMENT (READY TO DESPATCH) ON ACTUAL BASIS.

AT THE TIME OF PSV WE WILL TAKE STOCK SALEABLE DEPARTMENT (READY TO DESPATCH SECTION)

SUPPOSE, IN RETURN OF ER-1 SHOWING CLOSING STOCK 100000 MT
AND NEXT YEAR WE WILL TAKE OPENING STOCK OF 1.4.2016 IS 990000 MT

10000 MT FOUND SHORTAGES DURING THE PSV

THIS TREATMENT IS OK OR NOT OR OTHERWISE WHICH TREATMENT REQUIRED

PLEASE ADVISE US

Amol S Joglekar

Amol S Joglekar (Expert)
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12 April 2016 no, that is not the correct way to deal with. When physical stock is more, you need to check if any purchase is NOT entered. After due investigation, if the same can NOT be traced out, you need to go by Physical Stock.

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