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The Stock reconciliation template evidences and reconciles the stock or inventory balance on the balance sheet each period. It offers two ways of building up the figure: a Simple view broken down by bookkeeping account and stock type, and a Complex view broken down by stock type with quantity and rate detail, plus an optional comparison of stock value against a prior period.

Table of contents 

When should I use this template?

Use this template on the stock or inventory account or accounts each period, to list out and evidence what makes up the closing stock balance.

Choose Simple when you want to tie the schedule back to specific bookkeeping accounts, or when one line per account (or a handful of lines splitting an account by stock type) is enough detail. Choose Complex when you want a full breakdown by stock type with quantity and rate, without needing to link each line back to an individual account.

Before you start

Have your stock-take sheets, valuation workings and any independent verification evidence ready to attach. Decide whether you need the Simple or Complex view. You can switch between them later without losing what you have entered, but the columns available differ between the two (see the FAQs).

Background

Stock is generally carried at the lower of its cost and what it could be sold for. That is why the template gives you a separate box for the stock's value and a separate box for any impairment write-down, rather than a single combined figure.

Steps

  1. Choose Simple or Complex using the dropdown at the top of the template (Simple is the default).
  2. Optional stock sheet. At the top, you can attach your overall stock count or valuation sheet and relabel the box (it defaults to Stock sheet).
  3. Simple view.For each line:
    • Drag in the relevant bookkeeping account or accounts using the account-picker (#) tool. You can use the same account across more than one line, so a single account can be spread over several stock-type lines, or several accounts combined into one line.
    • Choose a Stock type from the dropdown: Finished goods, Goods for resale, Work in progress, Raw materials, Consumables, Spare parts, Merchandise, Production supplies, Other, or Total stock.
    • Attach a supporting file, add a comment and a description.
    • Enter the Amount and any Impairment (enter impairment as a negative to write the value down). The Final amount column adds the two together automatically.
  4. Complex view.For each line (not linked to a specific bookkeeping account):
    • Choose a Stock type, attach a file, add a comment and description, and give the item a stock number or reference.
    • Enter a Quantity and a Rate. The Amount defaults to quantity multiplied by rate, but you can overtype it if you need to record a different value.
    • Enter any Impairment. The Final amount column adds amount and impairment together.
  5. Verification. Choose how the stock was verified: Verified by us, Independent verification, None, or Other (which opens a free-text box to give detail). Attach any verification evidence.
  6. Aggregated summary (Simple view only). Tick To show aggregated summary to display a comparison, by account, of this period's stock value against a prior period. Choose whether that comparison is against the prior Monthly, Quarterly or Yearly period.
  7. Reconciliation. The template totals the Final amount column and compares it to the stock account's actual value in the trial balance, showing the usual reconciled indicator (with the account value, template value and difference) once the two agree. By default it needs to match to the nearest pound. Your administrator can configure it to require a match to the nearest penny instead.

What flows through to the rest of the accounts/workflow?

Nothing beyond reconciling the stock account itself. Like other account templates, this schedule only drives the reconciliation indicator for the account or accounts it is attached to. It does not automatically populate any narrative stock note or disclosure elsewhere in the accounts.

What rolls forward next year?

Your stock listing carries forward automatically when you copy data into a new period. Accounts (Simple view), stock types, descriptions, quantities, rates, values and impairments are all pre-filled from last year, ready for you to update to the new stock take. Your Simple or Complex choice and the verification and aggregated-summary comparison settings carry forward too. Nothing clears itself automatically, so update or remove anything that no longer applies before relying on the total.

Where the data comes from

Everything is entered manually, based on your stock-take and valuation workings: the accounts or stock types, descriptions, quantities, rates, values and impairments. In Simple view, the accounts you drag in are picked from the trial balance. The prior-period comparison in the aggregated summary is pulled automatically from the trial balance for whichever comparison period (Monthly, Quarterly or Yearly) you have selected.

Frequently asked questions

What's the real difference between Simple and Complex?

Simple ties each line back to specific bookkeeping accounts and lets you enter the value directly. Complex is organised by stock type with quantity and rate, and calculates the value for you (though you can still overtype it), but is not linked to individual accounts.

If I switch between Simple and Complex, do I lose my lines?

No, your rows are kept. But the columns specific to each view (the account picker in Simple; quantity, rate and stock number in Complex) only show for the view you are currently in, so check both if you have used them at different times.

Why has the aggregated summary option disappeared?

It is only available in the Simple view.

Where do the "previous period" comparison figures come from?

They are pulled automatically from the trial balance, based on whichever comparison frequency (Monthly, Quarterly or Yearly) you have selected.

Why won't the template reconcile?

Check that every line has a value and any impairment entered, and that the verification section is complete. The unreconciled indicator's hover text shows the account's actual value, the template's total, and the difference between them. Use this to trace what is missing. If your firm reconciles to the nearest penny rather than the nearest pound, a very small rounding difference may also be the cause, so check with your administrator.

If the template refuses to reconcile despite the totals looking right, check the rounding tolerance. By default the template needs to match the trial balance to the nearest pound, but your administrator can configure it to require a match to the nearest penny.