Stock control is only available from Pearl Standard upwards. To turn stock control ON, visit Setup : Configuration and billing, then run through the setup screens.

To manage stock levels for a product, make sure the "manage stock control" for the item is set to "yes" in the product edit screen. You can have some items where stock is managed, and some items where it's not. If you are managing stock for an item, then you can only sell and buy it in full units.

Processes that add stock

1. Creating a Purchase Order then receiving the stock for it
2. Creating a Sale Order with negative stock quantities and posting to accounts or clicking "update stock"
3. Using the manual stock adjust screen
4. Import/Export from a spreadsheet with "update stock" ticked

Processes that remove items from stock

1. Create a Sale Order and posting to accounts or clicking "update stock"
2. Using the manual stock adjust screen
3. Creating a Purchase Order with negative quantities

Creating an order for stock adjustments

If a customer is returning one item for another you need to create a sale order on the system to reflect this. It may not have a total value, but must be done for stock control purposes.

Stock valuation

Stock is valued using the price actually paid, excluding tax, in your base currency.

When stock on a Purchase Order is received, the cost value as shown for each item on the Purchase Order is entered into the stock database, using the base currency. If an invoice has not been entered yet for this Purchase Order, then this cost is only provisional.

When the invoice is later received for the Purchase Order, Pearl will update the cost value of each remaining item in the database and mark the prices as confirmed. The total value of the stock is then entered into the accounts ledgers.

When a supplier invoice is allocated against a Purchase Order before stock is received, then the items are received into the stock database as "stock in transit", with confirmed prices, and the value is added to the accounts ledgers. Since you have received the invoice, you own the stock but it is not yet in your posession. When the stock is received, it is transferred from "stock in transit" to the relevant warehouse location.

Note that the accounting ledgers are only affected when you receive a Purchase Invoice against a Purchase Order and some or all items on the order are set to manage stock, and have been set a stock code.

Drop-ship purchase orders

You can set a Purchase Order to be "drop-ship" (direct to customer), in which case the stock will never be received. You can't have items on a drop-ship Purchase Order affecting the stock asset accounts, so Pearl will use the Purchase code for the product even if you have Cost of Sales switched on.

Cost of Sales

There are two ways to track the cost of sales with Pearl:

1. Perpetual, live Cost of Sales

Switch this on at Setup:Finance. Each and every sale made affects the accounting ledgers, moving stock value from your Asset codes to your Purchases codes depending on the value of stock sold.

2. Periodic Opening and Closing stock balances

This method requires that you do a stock take at the end of each month to establish your current stock asset value. Any difference in stock value since the last month end should be transferred from your stock code to a Cost of Sales code using the manual journal entry screen. Please see your accountant for more information.

Negative stock quantity

If your stock database is out of sync with your real stock, you may find that you have sold an item where there are none in stock. Pearl still allocates a Cost of Sale figure to the sale, using the last price paid, or if no Purchase Order exists for the stock, the cost price as defined by the "cost price list" on that sales order will be used.

First-in-first out

Each stock item purchased has a value, and this value may vary between Purchase Orders so items are tracked by the date they arrive. The oldest items are sold first (First In First Out - FIFO). So say for example you have purchased 10 items at £10.00, then purchase another 5 of the same item at £15.00.

Your stock database will show:

1st Jan : 10 x Item @ £10.00 = £100.00
5th Jan : 5 x Item @ £15.00 = £75.00

Total stock value is £175.00, Last price paid is £15.00

If you then sell 12 items, all 10 of the first delivery will be removed, along with 2 of the second delivery (first in first out). The total value removed from stock is:

10 x £10.00 = £100.00
+ 2 x £15.00 = £30.00

Total £130.00

This is the Cost of Sale, which is applied to the accounting database for this sale of 12 items.

Viewing current stock levels

To view a list of ALL your current stock and it's value, click Products - Stock - Stock report from the main menu.  

To see if a particular item is in stock, search for the product using the products quick search box. Existing stock quantity will be shown, less any allocated stock, giving a "stock on hand" figure. If you have multiple warehouses set up, hover over the figure to see what stock you have in each warehouse.

Amending stock values

If for any reason you want to change the value of stock already received into the stock table, then you can visit the stock report and edit the values directly. There is no change log for this.

Adjusting stock: a variant of a bundle

If you wish to sell a bundle, but switch one of the subproducts for another. Add the original bundle to the order, but also enter two adjusting lines to the order. For example a computer bundle may normally come with a Monitor X, but the customer wants to switch this for Monitor Y. Add the computer bundle to the sale, then add two rows to reflect the switched subcomponent.

    -1 Monitor X

and add another line

     1 Monitor Y

Add any price adjustment if required.

Stock is only removed from the system when the sale is posted to accounts.

Stock take: manually updating the stock of products

Every stock system gradually has errors introduced via human error, losses, theft and excess, so it's important to do a full stock take as often as you can to verify that your Pearl system contains the most up to date information. A stock take is done by exporting a list of products, amend the stock quantity, and re-import the file.

1. Visit the Products : Import/Export screen
2. Export your stock file (or just one category or brand if you like). Make sure you tick the "include stock qty" box, which will only output items where stock is managed.
3. Save the original file.
4. Save a copy as the "edited version" before you go any further!
5. Format the spreadsheet so that it prints nicely. Don't delete any columns ... you can choose to "hide" them in Excel.
6. Print out the file and check each item against your actual stock levels. This is often much much easier with two people.
7. Amend your Excel file with the corrected quantities.
8. Save a copy as "checked" - and keep this somewhere since it's handy to have for future analysis.
9. Re-import the spreadsheet using the Products import-export screen, making sure that you tick the "update stock quantities" for the relevant warehouse.

Pearl will check the number in your spreadsheet against the number in the stock table (for that warehouse), and if there is a difference and adjustment posting will be made. Note that the adjustment will only be made to the stock table, and not your ledgers.

Note that you should not amend the stock levels this way if you have given stock away as a prize, gift etc. Create a sales order and set the value to be zero. Then your Profit and Loss account will show that you purchased the stock, it has an asset value and you have now written it off properly.

Intangible (non stock) products, such as labour and time

It is possible that you will want to create Sales Invoices for customers for items such as time, labour or services. These should be created on Pearl as a normal product, but make sure that “manage stock” is set to “no”. Alternatively if you don’t want to track sales of this item in future reports, you can use the “misc item” and change the name on each sale.