Managing inventory under the Periodic Inventory Method requires manually entering stock values at the end of a period. This ensures that Cost of Goods Sold (COGS) is accurately calculated and financial statements reflect the correct inventory balances.
This guide will walk you through how to enter stock periodic values in Bukku.
What Are Stock Periodic Values?
Stock periodic values represent the closing stock value at the end of a specific period (monthly, quarterly, or yearly).
These values are used to calculate Cost of Goods Sold in the Periodic method:
Cost of Goods Sold = Opening Stock + Purchases − Closing Stock
You can use values from Bukku’s Inventory Report or your own physical stock count.
Note: Even under Periodic, you can toggle inventory tracking on. Bukku will track quantities, but Cost of Goods Sold is not automatically posted — you manage it via the Periodic Values Table.
Understanding the Chart of Accounts in Periodic Inventory System
In Bukku’s Periodic Inventory Method, every inventory account automatically has corresponding Inventory – Stock Opening and Inventory – Stock Closing accounts created by the system.
These accounts are used to track the opening and closing values for each inventory category, ensuring accurate calculation of Cost of Goods Sold at period-end.
If you categorise your inventory by type, whenever you create a new inventory account with the system type set as Inventory, Bukku will automatically generate the associated Inventory – Stock Opening and Inventory – Stock Closing accounts for that item.
This automation helps maintain consistency and reduces the risk of errors when entering periodic stock values.
You can view and manage the new inventory account along with its closing stock values under Stock > Periodic Values.
Step-by-Step: Entering Periodic Stock Values
Step 1: Prepare Your Closing Stock Data
Perform a physical stock count or review Bukku’s Inventory Summary.
Note down the total value of each product (unit cost × quantity on hand).
Step 2: Access the Periodic Values Table and Enter the Closing Stock Values
Go to Stock > Periodic Values in Bukku.
Select the period you want to enter values for (e.g., Jan 2026).
Locate your inventory account in the table and enter the closing stock value manually.
Click Save to record the values.
Step 3: Review Cost of Goods Sold
Once closing stock is entered, Bukku calculates Cost of Goods Sold for the period using:
Cost of Goods Sold = Opening Stock + Purchases − Closing Stock
This ensures your Profit & Loss report reflects accurate gross profit for the period.
Example: Entering Closing Stock Value Using Bukku’s Inventory Summary
Assume a new business starting in December 2025, selling pens, not using a physical stock count, and opting to use the Weighted Average Cost method. You want opening and closing stock to be presented in the Profit & Loss statement.
Step 1: Record Purchases and Sales
For example, 10 pens purchased on 03/12/2025 at RM 2.00 and 6 pens purchased on 10/12/2025 at RM 2.20 give a total value of RM 33.20 for 16 units, resulting in an average cost of RM 2.075 per unit. When 4 pens are sold on 15/12/2025, COGS is RM 8.30, leaving 12 pens in stock. Multiplying the remaining 12 units by the average cost gives an updated inventory value of RM 24.90, which Bukku reflects automatically in the inventory report for the pens.
Step 2: Enter Closing Stock in Bukku
Go to Stock > Periodic Values.
Enter RM 24.90 as the closing stock for December 2025.
This ensures the Profit & Loss for December shows:
COGS = Purchases − Closing Stock = RM 33.20 − RM 24.90 = RM 8.30
Note: This amount is the same as the COGS calculated under a Perpetual Inventory system in the same scenario.
Step 3: Enter Closing Stock for the Next Period
Assuming it is now January 2026, you purchase 5 pens on 02/01/2026 at RM 2.50 each and sell 2 pens on 10/01/2026 at RM 4.00 each. Starting with 12 pens valued at RM 24.90 from December, the new total stock after purchase is 17 pens with a total value of RM 37.40, resulting in a new weighted average cost of RM 2.20 per unit. When 2 pens are sold, the COGS is 2 × RM 2.20 = RM 4.40, leaving 15 pens in stock with a total value of RM 33.00.
To record this in Bukku using the Periodic Inventory Method, enter RM 33.00 as the closing stock for January 2026 in the Stock > Periodic Values table.
When generating the Profit & Loss report for January 2026, Bukku automatically treats RM 24.90 (December closing stock) as the opening stock and RM 33.00 as the closing stock, ensuring accurate calculation of Cost of Goods Sold, which is RM 4.40, while allowing monthly presentation of inventory in the P&L.
Note: This assumes you are updating closing stock and generating reports on a monthly basis.
Note: This amount is the same as the COGS calculated under a Perpetual Inventory system in the same scenario.
