What posts where

NextGenManager keeps a perpetual inventory: stock and the ledger move together. This page shows the accounting entry behind each document, for accountants who want to trace a balance to its source.

Purchasing

Document	Debit	Credit	Date
Goods receipt (GRN)	Stock	GR/IR Clearing	Day the receipt is posted
Vendor invoice posted, with a GRN	GR/IR Clearing, Input CGST / SGST / IGST	The vendor	Invoice date
Vendor invoice posted, no GRN (services)	Purchases, Input GST	The vendor	Invoice date
Vendor payment	The vendor	Bank or cash	Payment date
Vendor payment with TDS	The vendor	TDS Payable, Bank	Payment date
Debit note confirmed	The vendor	GR/IR Clearing, Input GST	Note date
…and its stock	GR/IR Clearing	Stock	Day it is confirmed

GR/IR Clearing holds the value of goods you have received but not yet been billed for. It is cleared when the vendor's invoice is posted. Its balance is shown on the Stock vs GL report.

Stock

Document	Debit	Credit
Opening stock	Stock	Opening Balance Equity
Stock count — shortage	Inventory Adjustment (expense)	Stock
Stock count — excess	Stock	Inventory Adjustment Gain (income)

Production

Event	Debit	Credit
A batch is recorded on an operation (material consumed)	Work-in-Progress	Raw Material Stock
Complete WO (finished goods booked)	Finished Goods Stock	Work-in-Progress
Unused material returned on closing	Raw Material Stock	Work-in-Progress
Close WO	— status only

Material is valued at the product's standard cost.

Sales

Document	Debit	Credit	Date
Delivery challan issued	Cost of Goods Sold	Finished Goods Stock	Day it is issued
Tax invoice generated	The customer	Sales, Output CGST / SGST / IGST	Invoice date
Record Payment on the sales order	Bank or cash	The customer	Payment date
Credit note issued	Sales, Output GST	The customer
…and its stock	Finished Goods Stock	Cost of Goods Sold

Accounts

Voucher	Debit	Credit
Receipt	Received Into	Received From
Payment	Paid To	Paid From
Contra	Transfer To	Transfer From
Payroll	Salaries & Wages (gross + employer's share)	PF, ESI, Professional Tax, TDS Payable, Salary Payable (net)
Depreciation	Depreciation	Accumulated Depreciation
TDS challan	TDS Payable	Bank
Opening balances	As in the file	As in the file

Two things to know about dates

• Accounting documents keep the date you type. A vendor invoice, a tax invoice, a payment or a manual voucher is posted on its own date.
• Stock movements are dated the day you post them. A goods receipt, an issue to production, a completion or a dispatch is stamped with the day you clicked the button, whatever date is written on the document.

So enter stock documents on the day the goods actually move. Otherwise a receipt and its invoice can fall in different months, and GR/IR Clearing will show the difference in between.

Customers and vendors in the ledger

Each customer and vendor has its own account under Sundry Debtors or Sundry Creditors. In reports a customer's account is shown as C- and a vendor's as V- followed by a number. The Ensure Ledger button on a contact creates the account if it is missing.