Once the reconciliation of the stock accounts in the financials module agrees to the stock valuation report, the stock general ledger integration flag can then be re-enabled from the company preferences form.
Movements in stock will then be reflected with general ledger journals. The balance of the stock accounts should then always agree to the stock valuation report provided there are no manual journals entered to these accounts. It is important to understand the two levels of General Ledger integration available.
Firstly, sales integration allows integration of invoices, credits and receipts to sales and debtors control accounts. This level does not produce any general ledger journals for the cost of stock sold. The system has flexible configuration allowing many ways to configure the accounts to which invoices and credits are posted to the sales accounts.
Secondly, stock integration enables the automatic creation of general ledger journals for the cost of sales and the stock accounts. Also, stock movements from purchase order arrivals and sales of stock are also documented as general ledger journals. It is not necessary to use the stock integration to the general ledger although a fully standard costing based accounting system with full general ledger integration, will arguably provide the fastest and most informative financial reporting system for manufacturers.
