A meeting took place at Dadar to discuss on some features to be
implemented in the next version.
Attendees :- Krishnakant Mane, Arun Kelkar, Prajkta Patkar, Rohini
Baraskar, Mohammad Talha Pawaty and Abhijith Balan.
The meeting began with a discussion on Bill Wise Accounting. When a
Receipt/Payment voucher is made a table showing pending bills must
appear as soon as corresponding account is selected. For this the
invoice amount and the amount received against it must be compared. To
implement this in GNUKhata a new table will be created in the database.
Details about the new table can be seen here
(https://gitlab.com/gnukhata/gkcore/issues/304) . In future versions
other scenarios that involve return of goods will be taken into
consideration.
Then budgeting was discussed. In budgeting targets are set and compared
with actual figures. Yearly budgets are created and further broken down
into monthly and then into weekly budgets.
After budgeting, stock valuation was discussed. The value of stock
changes with time. So, some method is adopted to determine the value of
the stock when it goes out. The quantity of stock that goes out is
compared with quantity of stock purchased at certain price and the
adopted method of stock valuation is applied. In First In First
Out(FIFO), for the stock that goes out first the earliest price is
applied. When quantity of stock that goes out exceeds quantity purchased
at this price the later price is applied.
In Last In First Out(LIFO) latest price is applied to the stock that
goes out. As quantity of stock that goes out exceeds quantity of stock
purchased at this price the earlier price is applied. Another way to
value stocks is to take the simple average of price. This will be total
price divided by number of purchases. Yet another way is to use a
weighted average. Here the sum of product of price at which a stock is
purchased and the quantity purchased is divided by total quantity.
Next is Profitability ratio. It is calculated for a period input by the
user. A stock valuation method is applied to find out cost at which a
stock was purchased and price at which is sold. Profit is found out and
its ratio to sales and purchase is found out.
A spreadsheet prepared by our Domain Expert Mr. Arun Kelkar will be
helpful in understanding stock valuation and profitability ratio. Please
find the attachment.
Attachment:
stock_valuation_for_kk.xlsx
Description: application/vnd.openxmlformats-officedocument.spreadsheetml.sheet
