Stock quantities are included on the financial transactions which are created in the background whenever you process any document from a sales invoice to payslip, and which in turn form the basis of your financial records including your profit and loss account, and balance sheet.

In general terms stock quantities and values are updated as set out in the following flowchart, and you will note that when items have been purchased any variance between the (standard) stock value and purchase invoice value is written off to the profit and loss account (price variance) expense account, so thereafter stock is circulating within the business at the (standard) stock value.