Closing stock & cost of goods sold in your accounts

If you track inventory, Finocket can fold the value of your stock into your financial statements — the way an accountant prepares final accounts. Your balance sheet shows Closing Stock as an asset, and your profit & loss shows Cost of Goods Sold and gross profit.

How it's worked out

Stock is valued at weighted-average cost — the method used under Indian (Ind AS 2), Australian and US accounting standards alike. From the stock ledger Finocket computes:

• Closing stock — the value of everything on hand as at the report date.
• Cost of goods sold = opening stock + purchases during the period − closing stock.
• Gross profit = sales − cost of goods sold.

Turning it on

On the profit & loss and balance-sheet screens there's an Include inventory switch. It's on by default once you have any stock movement, and you can turn it off to see the plain, posting-only statements.

Good to know

This is a presentation overlay: it's computed from your stock ledger at the moment you open the report and doesn't create any new ledger entries, so your trial balance, cash flow and audit trail keep showing only real postings. It keeps the balance sheet balanced to the paisa. It reflects the stock you've recorded — so keep your inventory receipts and sales up to date for the numbers to be right.