What is Opening Stock?
Opening stock is the quantity and value of goods a business has at the start of a period, or when it starts using a new system.
Updated
Meaning
English
Opening stock is the quantity and value of goods a business has at the start of a period, or when it starts using a new system.
Roman Urdu
Opening stock woh maal hai jo kisi muddat ke shuru me, ya naya system shuru karte waqt, dukaan me maujood ho.
Also called opening balance, opening inventory, shuruati stock.
Example
A shop moving from a paper register to software counts everything on the first night: 1,860 items worth 4.2 million rupees at cost. That count is entered as opening stock, and every sale and purchase after it builds on it.
How it works
When switching to a POS, the opening stock is the foundation: if it is wrong, every report after it is wrong. Count carefully, use the right units, and enter cost prices too, otherwise profit reports will show items with no cost. It is fine to start with the fast-moving items and add the rest category by category.
In accounting, the opening stock of one period is the closing stock of the previous one, and both feed the cost of goods sold calculation.
In Nafaa
Products can be brought into Nafaa through bulk import with an editable preview and paste from Excel. Opening stock is posted as an opening balance in the chosen branch, and importing products that already exist can set or add stock, posted as an adjustment.
Related terms
- Stock Take
A stock take is a physical count of the goods on the shelves and in the store, compared with what the system says should be there.
- Stock Valuation
Stock valuation is the money value of the inventory a business holds on a date, usually counted at cost.
- Stock Adjustment
A stock adjustment is a manual correction to a product's stock quantity, with a reason, when the system figure does not match reality.