Processing Trading Stock transactions

This support note applies to:

AE MAS (AU)

Article ID: 28288

In MYOB Accountants Enterprise MAS (AE MAS) to produce an accurate trading stock profit and loss report there are specific settings you need to apply and transactions which you need to process.

Perform the following reviews:

Setting up the client chart correctly;
Transactions for the end of a period; and
Transactions for the end of a year.

To check the client chart setup

The standard MYOB AE MAS Master Chart has been set up for the Trading Area as follows:

Account Code	Description	Balance Forward Account	Type	Special Use
250 - 256	Opening Stock		P	O
259	Opening Work in Progress		P	O
260-266	Closing Stock		P	C
269	Closing Work in Progress		P	C
720-728	Stock on Hand	250-256	B	K
729	Work in Progress	259	B	K

To report the trading stock information correctly, you need to adhere to this standard.

Open the MAS ledger and follow the menu path: Setup > Client Files > Client Chart. The Client Chart screen appears.
Select each of the account codes in the above table respectively and press Enter. The Client Chart: Edit Account screen appears.
Check the details are as the above table, amend to match the details of the table above and click OK. The Client Chart screen appears.
Press Esc. The MAS ledger appears.

To process the period end transaction

You need to process the following journal entry prior to producing periodic financial reports to record the correct balances for closing stock and stock on hand.

MYOB recommends you process this transaction as an auto reversal journal. If you do not set it as an auto reversal journal you need to enter a separate transaction to reverse these balances at the beginning of the next period.

You need to process this entry for the system to record the notional periodic Opening Stock correctly.

After a Period End Balance Forward is performed, the system needs to clear the Stock on Hand and Closing Stock Accounts to zero. This can occur automatically if the transactions are processed as auto reversal as recommended or you need to process a manual transaction if you did not process the end of period transaction as an auto reversal transaction.

Open the MAS ledger and follow the menu path: Data > Journals > Journal Entry. The Data Entry: Journals screen appears.
Select the period end date and click OK. The Journals screen appears.
Click the Reverse option. The Reverse option is selected.
Enter the following transaction with the balances appropriate to your trading information at the end of the period.
Click Exit and Post. The transaction is posted and the MAS ledger appears.

To process the year end transaction

Prior to producing financial reports at the end of the year, you need to perform the following journal entry to record the correct year end balances for closing stock and stock on hand.

The MAS program automatically creates journal entries which clear the Stock on Hand Accounts and transfer the values to Opening Stock as part of the automated year end procedure which occurs when the ledger is balanced forward into the next financial period. Therefore, you do not process the year end transaction as an Auto Reversal journal. Do not select the Reverse option on this transaction.

Open the MAS ledger and follow the menu path: Data > Journals > Journal Entry. The Data Entry: Journals screen appears.
Select the period end date and click OK. The Journals screen appears.
Enter the following transaction with the balances appropriate to your trading information at the end of the period.
Balance Sheet stock on hand accounts
Debit
Profit and Loss Closing stock account
Credit
Click Exit and Post. The transaction is posted and the MAS ledger appears.

Balance Sheet stock on hand accounts	Debit
Profit and Loss Closing stock account	Credit