As per the perpetual inventory system, accounting entry is done for every stock transaction. Otherwise, it's done in larger intervals for example monthly or quarterly. Each warehouse is linked with a corresponding account head.

On receipt of items in a particular warehouse, the balance in the Warehouse Account will increase. Similarly, when items are delivered from the Warehouse, an expense will be booked, and the balance in the Warehouse Account will reduce.

1. How to activate perpetual inventory

1. Activate Perpetual Inventory:

Home > Accounting > Company > Enable Perpetual Inventory



Note that if you disable perpetual inventory, users will have to manage the account entries manually.

2. Set up the following default accounts for each Company if not set. These accounts are created automatically in the new StrideERP accounts.
   • Default Inventory Account (Asset)
   • Stock Received But Not Billed (Liability)
   • Stock Adjustment Account (Expense)
   • Expenses Included In Valuation (Expense)
   • Cost Center
3. If the user wants to set an individual account for each warehouse, create account head for each account. Go to:

Accounts > Chart of Accounts > Company > Application of Funds (Assets) > Current Asset > Stock Assets > Create a new account with same name as Warehouse

Now, go to a warehouse and link this account to the warehouse. This helps in filtering and viewing statements warehouse-wise.

4. For stock transactions, general ledger entries made against the Account Head set on the warehouse, if the user had not set the account for the warehouse then the system gets the account head from the parent warehouse. If Account was not set for parent warehouse then the system gets the account(Default Inventory Account) from the company master.