Closing Stock Balance

Overview

Below is a business‑focused explanation of the Closing Stock Balance document, written for practical day‑to‑day use in Dafater.

What is the Closing Stock Balance used for?

The Closing Stock Balance is used to formally record and confirm the quantity and value of inventory available at the end of a specific period, such as month‑end, quarter‑end, or year‑end.

It provides management with a clear snapshot of stock on hand, supporting: - Accurate financial reporting
- Inventory valuation
- Audit and compliance requirements
- Better planning for purchasing and sales

In simple terms, it answers the question:
“What stock do we actually have at the close of this period?”

Prerequisites before using Closing Stock Balance

Before creating a Closing Stock Balance, the following should be in place:

All stock movements (receipts, issues, transfers, sales, and returns) for the period are fully recorded
Warehouses or storage locations are correctly defined
Items are properly categorized and priced
Physical stock counts (if performed) are completed and verified
The accounting period is clearly identified and ready to be closed

Ensuring these prerequisites helps avoid discrepancies and rework later.

Typical workflow and how it fits into business processes

The Closing Stock Balance usually follows this workflow:

End‑of‑period review
The inventory team reviews all stock transactions for the period.
Physical verification (if applicable)
Actual stock on hand is counted and compared with system records.
Preparation of Closing Stock Balance
The document is created to capture final quantities and values for each item or warehouse.
Management review and confirmation
The balance is reviewed for accuracy before final approval.
Period closure support
The confirmed Closing Stock Balance is used for financial statements, audits, and planning for the next period.

This document acts as a bridge between daily inventory operations and financial reporting.

Key business scenarios where Closing Stock Balance is essential

The Closing Stock Balance is especially important in the following situations:

Month‑end and year‑end closing to ensure inventory values are correct
Financial audits where verified stock figures are required
Cost and profitability analysis to understand the value of unsold goods
Inventory planning to avoid overstocking or stock shortages
Regulatory compliance where inventory reporting is mandatory

Without a reliable Closing Stock Balance, business decisions may be based on inaccurate data.

Important considerations for users

When working with the Closing Stock Balance, users should keep the following in mind:

Always complete and verify all stock transactions before creating the document
Differences between physical stock and recorded stock should be investigated, not ignored
Once confirmed, the Closing Stock Balance should not be changed casually, as it affects financial reports
Consistent use of this document improves trust in inventory and financial data
Clear internal responsibility (who prepares, who reviews) helps avoid errors

In summary

The Closing Stock Balance is a critical business document in Dafater that ensures inventory accuracy at the end of a period. It supports financial integrity, operational planning, and confident decision‑making by providing a reliable view of what the business truly holds in stock.

Basic Information

Module: Stock
Document Type: Other

Fields

Field Name	Label	Type	Options	Description
naming_series	Naming Series	Select	CBAL-.#####	Auto-generated document numbering pattern for closing stock balances.
company	Company	Link	Company	Company for which closing stock balance is calculated.
status	Status	Select	Draft, Queued, In Progress, Completed, Failed, ...	Current processing status of the closing stock balance task.
from_date	From Date	Date	-	Start date for stock transactions considered in calculation.
to_date	To Date	Date	-	End date for stock transactions considered in calculation.
item_code	Item Code	Link	Item	Specific item to filter closing stock balance.
item_group	Item Group	Link	Item Group	Item group used to filter closing stock balance.
include_uom	Include UOM	Link	UOM	Unit of measure to include quantities in reports.
warehouse	Warehouse	Link	Warehouse	Warehouse for which closing stock balance is calculated.
warehouse_type	Warehouse Type	Link	Warehouse Type	Warehouse type used to filter stock balance calculation.
amended_from	Amended From	Link	Closing Stock Balance	Original closing stock balance document being amended.

Permissions

Role	Read	Write	Create	Delete	Submit	Cancel
System Manager	✓	✓	✓	✓	✓	✓
Stock Manager	✓	✓	✓	✓	✓	✓
Stock User	✓	✓	✓	✓	✓	✓

DocType	Relationship	Module
Closing Stock Balance	Links to	Stock
Company	Links to	Setup
Item	Links to	Stock
Item Group	Links to	Setup
UOM	Links to	Setup
Warehouse	Links to	Stock
Warehouse Type	Links to	Stock