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Hello.
I am working for a company who has just (I say just, it was January) aquired new bispoke accounting software for their business.
We have had concidereable trouble with this software with issues where VAT is not calculated correctly being one of the more serious.
I now do not trust this software and it is very difficult to trace back any trails of information.
I am now looking at the stock and their accounts.
I would like to say at this point that it is not Sage, they have just used the same nominal number as Sage.
I hope I can explain this so that it can be understood.
Our year end was 31/12/2023 the new system was used from 1/1/2024 with the journals being entered on 22/12/2023 ( for a short while we were entering the data onto both the old system and the new system)
I am now only talking about the new system.
The year end procedure was run and the system was put into the new year of 1/1/2024 to 31/12/2024.
The stock journals were entered to transfer the stock from the asset account (1001) to the opening stock account for the year (5200)
1/1/2024 1001 CR 1155816.34 5200 DR 1155816.34
The nominal account 5200 is now not going to be used again for the rest of the year, all transactions will go between 1001 and 5201 (closing stock - cost of sales)
When I then go into the overview of these accounts 1001 and 5200 there is a Month to date balance and a Year to date balance.
In the opening stock account 5200 the period balance to January for both the MTD and YTD figures is DR 1155816.34 which is correct.
It is when it comes to 1001 and 5201 that I am having doubts (maybe unnessesarily but I do not trust the system at the moment)
The Closing stock - cost of sales 5201 on 31/1/2024 has a MTD and YTD balance of 1033663.75 which is the closing stock for January.
The Asset account 1001 on 31/1/2024 has a MTD figure of -122152.59 and a YTD figure of 1033663.75
The MTD figure of -122152.59 is the opening stock 1155816.34 less the closing stock 1033663.75 = 122152.59.
My question is, is this the correct way around?
Should the asset account 1001 for month 1 have the same figures in both the MTD and the YTD being 1033663.75 and the Cost of sales account
5201 have the figure of 122152.59 for the MTD figure? Or is the asset account showing me the movement of stock for the month as all is well
We have not changed any of our working practices but since the new system the manangement accounts have been concierable down and my director is asking why
If anyone can shine some light on this I would be eternally greatful
Thank you
Rachel
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