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Inflation accounting (correction) is the correction of financial statements that cannot express the real situation due to changes in the purchasing power of money, in order to make them express the real situation. Inventories are also included among non-monetary assets when reaching the amount subject to adjustment in cost or purchase prices. Inflation Correction - It is done on the Stocks page.

Path: ERP > Finance Accounting > Accounting Transactions > Inflation Adjustment - Stocks

Inflation correction on Workcube can be done in 3 different methods: fixed asset basis, stock basis and account basis.

Inflation Adjustment - Accounting Records
Inflation Adjustment - Stocks
Inflation Adjustment - Fixed Assets

Inflation Adjustment - Stocks

Inflation adjustment can be done directly through accounting accounts, or it can be done by separating fixed assets and stocks. Stocks reaching significant amounts in terms of type and quantity may be adjusted according to aggregated methods. In the aggregation method, one can proceed with a simple average or stock turnover rate.

Category: Product category selection is made. Here, by selecting the category, each product category makes inflation adjustments within itself and a voucher is created.
Date: Stocks in the specified date range are received and calculated.
Simple Average: Correction coefficient is the coefficient obtained by dividing the price index for the month to which the financial statements belong by the index amount found by dividing the sum of this index and the price index at the end of the previous provisional tax period by 2. is determined.
Stock Turnover Rate: First of all, the stock turnover rate is calculated, then the average time in stock is calculated. It is determined from which month the stocks appear in the balance sheet at the end of the 2023 accounting period. The correction coefficient is found as of the date of correction, and this coefficient is multiplied by the amount of stocks appearing in the balance sheet at the end of the 2023 accounting period.

Stocks to be corrected on the page can be run separately on a category basis, or all stocks can be poured with the "Get Stocks to be Corrected" button.

After querying with Get Stocks to be Corrected, the stocks are listed with the beginning and end of the period stock amounts, costs, stock age and stock turnover rates. Inflation calculations are made depending on the stock turnover rate.

Coefficient: Yi-PPI index definitions are taken into account in the correction coefficient. Correction coefficients are based on Stock Age Date and Correction Date.
Inflation Difference: Found by subtracting the adjusted value and the end-of-period TL cost value. value.

Formula:

[1 38]

Correction Coefficient:	D-PPI / Stock for the month and year on the correction date D-PPI
	12/2023 = 2.915,02 / 01/2023 = 2.105,17 (364 Day)
	2,915.02 / 2,105.17
	1.38469
Corrected Value:	End of Period TL Cost x Coefficient
	159,576.80 x 1.38469
	220,964.40
Inflation Difference:	Adjusted Value - End of Period TL Cost
	220.964,40 - 159,576.80
	61,388 .52

Hint: If it is thought that there are errors in the calculations, they are run again after the relevant adjustments are made. If the incoming accounts and their values are correct, the operations continue.

Attention: Before creating an inflation accounting voucher, the inflation adjustment account accounting code of the products must be defined.

After ensuring the accuracy of the costs and the resulting difference accounts, "Inflation Accounting The microservice runs when "Create Correction Records" and "Create Cost Records" are selected. It assigns records at the back by making calculations one by one.

Create Inflation Accounting Adjustment Records: Assigns records to the "Accounting Records Checklist" after running. Before creating records, the Inflation Adjustment Account of the products must be defined.
Create Cost Records: This process can be done optionally. When you say "create cost records", the microservice runs and assigns cost records to the products in the list.
Create Inflation Accounting Correction Voucher: A voucher is created by entering the transaction type, correction date, voucher date and inflation difference account. The created voucher can be reviewed on the "Accounting Vouchers" page.

Attention: Inflation correction voucher can only be created for the same date and the same account. After the voucher is created, the "Create Voucher" button will disappear. For the button to be active, the relevant voucher must be deleted.

How is the stock turnover rate calculated?

Stock Turnover Rate	=	Cost of Goods Sold During the Period
		--------------------------------------------------------------------------
		[(Inventory Amount at the Beginning of the Period) + (Inventory Amount at the End of the Period)] / 2

For example;

Stock Turnover Speed	=	35,750,000.00 TL
		----------------------------------------------------------------------------------- = 5.5
		[(5.000.000,00 TL) + (8.000.000,00 TL)] / 2

How to calculate stock age?

Stock Age	=	Total Number of Days (365)
		------------------------------------------------------------------
		Stock Turnover Speed

For example;

Stock Turnover Speed	=	365
		-------------------------------------------------- = 66 Days
		5.5

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About Workcube Objects

Inflation Correction - Stocks

Inflation correction can be done directly through accounting accounts, or it can be made on the basis of fixed assets and stocks. Stocks reaching significant amounts in terms of type and quantity may be adjusted according to aggregated methods. In the aggregation method, one can proceed with a si...

Type: WBO Version: Lean v4 Licence: Standard Author: Workcube Core