http://frappe.github.io/erpnext/user/manual/en/stock/accounting-of-inventory-stock/
Periodic Inventory
Hello, i have done stock-in-hand booking as company’s asset. the Profit Loss Statement looks alright but the Balance Sheet is not because the inventory is accumulated from previous periods which is wrong. I think above highlighted step needs to be performed but i am little bit lost as how to do it. Any pointers would be highly appreciated.