Home Busy Accounting Software Unit 4 – Basic Configuration 51

Unit 4 – Basic Configuration 51

9 min read
0
0
55

Unit 4 – Basic Configuration 51

FIFO

FIFO refers to the First In First Out. Under this method, quantity of item purchased first is assumed to be sold first.

LIFO

LIFO refers to Last In First Out. Under this method, quantity of item purchased last is assumed to be sold first.

Last Purchase

Under this method, closing stock is valued at the price at which the last purchase was made for the item. It takes into account only the Purchase voucher.

Last Qty. In

Under this method, closing stock is valued at the price at which the last quantity was purchased or received. It takes into account Purchase voucher and Material Rcvd. From Party voucher whichever was lastly entered.

Last Sale

Under this method, closing stock is valued at the price at which last sale was made for the item.

Self Evaluation

Under this method, closing stock is valued at the price as specified by you in the Self Evaluation Price data field in Item master (see Unit 5).

Weighted Average

Under this method, closing stock is valued at the weighted average price based on the prices of all the quantities purchased or received.

Average Price

Under this method, stock is valued by dividing total amount in by total quantity in.

Enable Multi-Godown Inventory

Enable this option if you want to maintain details of Material Centre from where the goods are dispatched or where the goods are received. A Material Centre is a place where stock of raw material, semi-finished, finished products and so on can be stored. If you enable this option then Material Centre and Material Centre Group masters (see Unit 5) appears in the Masters menu and Stock Transfer voucher (see Unit 6) appears in the Transactions menu. For example, Star Electronics has a retail outlet or showroom and a godown where it keeps its stock. Hence, both the Showroom and Godown are Material Centres for the company.

52

Enable Bill Sundry Narration

Enable this option to enter narration for Bill Sundry at the time of voucher entry. On enabling this option, a Narration field will appear in the Bill Sundry Details grid in the voucher in which you can enter narration for each Bill Sundry used in voucher.

Show Items Current Balance during Voucher Entry

Enable this option if you want to view current balance or stock of the item in the voucher entry. After enabling this option, when you enter a voucher and select an item then current stock of the item will be displayed in the voucher. Thus, you are aware of the item’s current stock right at the time of voucher entry and can check whether stock of item is sufficient or not.

Separate Stock Updation Date in Dual Voucher

Enable this option if you want to maintain separate stock updation date and voucher date. Stock updation date here refers to the date on which stock is moved out or moved in and voucher date is the date on which bill / voucher is entered. For example, Star Electronics Company sells a Refrigerator and an Air Conditioner to a customer on 10th April and enters a Sales voucher on 10th of April. However, the delivery of goods took place on 11th April as refrigerator was not available in the godown for delivery and the customer does not want to take the refrigerator kept for display. Hence, in this case, voucher date is 10th April and stock updation date is 11th April as although the bill is raised on 10th April but goods are delivered or stock is updated on 11th April.

Separate Sales / Purchase Accounts with Item

Enable this option if you want to post various items to different Sales / Purchase account when the items are being sold or purchased. This is helpful in ascertaining the sale / purchase turnover of the items. For example, Star Electronics Company wants that whenever it sells Air Conditioners of LG Company then the entry should be posted in LG AC Sales account and whenever it sells Air Conditioners of Voltas Company then entry should be posted in Voltas AC Sales account. For this purpose, company enables this option and specifies the Sales / Purchase account with each item in Item master (see Unit 5). Now company can easily view the sales of LG Air Conditioners and Voltas Air Conditioners.

Separate Stock Valuation Method for Items

Enable this option if you want to value closing stock of various items by applying different stock valuation method. For example, Star Electronics want to valuate closing stock of item Television with FIFO method and stock of item Mobile Phones with Average Price method. For this purpose, it can enable this feature and specify separate stock valuation method with both items in Item master (See Unit 5).

Items Pricing Mode in Vouchers

Click this button if you want to set a default pricing mode for the vouchers. Pricing Mode here refers to the mode according to which default price of items will be displayed at the time of voucher entry. For example, you want that whenever you select an item in Sales voucher then the price at which item was last sold to a party should automatically appear in the voucher so that you do not have to

Load More Related Articles
Load More By amitgupta
Load More In Busy Accounting Software

Leave a Reply

Check Also

What is Account Master & How to Create Modify and Delete

What is Account Master & How to Create Modify and Delete Administration > Masters &…