How To: Post a Deferred Cost of Sales
Table Of Contents
Introduction
Posting Deferred Cost of Sales is an advanced user feature that allows you to review, amend and post deferred Cost of Sales (COS) values to the Accounts module at the end of a reporting period.
This process is typically carried out at the end of a month, week or day to ensure your stock values, profit and loss figures, and nominal account balances reflect the correct Cost of Sales.
Important: This feature should only be used by users who understand the Deferred Cost of Sales process and the impact it has on accounting and stock valuation.
Before You Start
Before posting Deferred Cost of Sales, ensure you have reviewed the figures displayed in the report and are confident they are correct.
If you need further guidance, see:
- Accounts Defer Cost of Sales
- How To: Generate and Analyse the Deferred Cost of Sales Report
- How To: Understand the Deferred Cost of Sales Process
Post Deferred Cost of Sales
- Open an Accounts screen. For guidance, see How To: Open an Accounts Screen.
- Press F9 or select the drop-down arrow next to Other Actions.
- Select Deferred COS Posting.
- Enter the last date of the period you wish to post, for example:
- End of the previous month
- End of the previous week
- The previous day
- Select OK to load the Invoice Items Awaiting COS Postings window.
- Review the report carefully and make any necessary amendments.
- Once you are satisfied with the figures displayed, select OK.
- Read the warning message displayed.
If You Need to Review the Figures
Select No to cancel the posting and return to the report. This allows you to review stock values and investigate any unexpected figures before continuing.
If You Are Ready to Post
Select Yes to continue and post the deferred Cost of Sales values shown in the report.
- Make a note of the COS Diff Total, displayed in the bottom-right corner of the Deferred Cost of Sales Report.
- The posting process will complete and update the relevant stock values, nominal accounts and profit and loss figures.
What Happens When You Post?
When Deferred Cost of Sales is posted:
- Deferred stock values are transferred into the accounting records.
- Cost of Sales journals are created where applicable.
- Nominal account balances are updated.
- Profit and Loss figures are adjusted to reflect the posted values.
- Posted transactions are marked as processed and will not appear in future Deferred Cost of Sales postings.
Important Notes
Cost of Sales Excluded Items
All stock sold or returned since the last Deferred Cost of Sales posting is included in the report unless the item has been marked as a COS Excluded Item.
This option can be found in the Stock | Detail | Options tab.
Zero Value Postings
If a line contains a value of 0.00 for both:
- Sk Unit
- Sk COS
it will still be marked as posted when you complete the process. However, no accounting journal will be created because the posting value is zero.
Process Overview
If you are unfamiliar with how Deferred Cost of Sales works, review How To: Understand the Deferred Cost of Sales Process before posting.
Best Practice
- Review the Deferred Cost of Sales report before every posting.
- Investigate unexpected stock values before confirming the posting.
- Record the COS Diff Total for audit and reconciliation purposes.
- Post regularly in line with your accounting periods.
- Ensure users performing the posting understand the impact on stock valuation and accounting records.