How the value is worked out
The night after the last day of the month Diffa reads the inventory in Shopify and multiplies the quantity on hand by the cost per variant and location. A cost in another currency is converted to SEK at the rate for the last day of the month. The total is the inventory value at the month end.
What is booked
Diffa books the change against last month’s booked inventory value (the first time against the opening value you enter) on the accounts for stock of goods for resale and change in stock. The voucher is dated the last day of the month with the inventory report attached, listing every item, quantity and value.
Only your own stock
Goods at locations that belong to a fulfilment partner (3PL) are not counted, nor are goods Shopify does not track or that are not shipped. You can also exclude locations and items that are not yours.
When something is missing
A variant with stock on hand but no cost is never valued at zero. The month waits for you, with the variant named, until the cost is set in Shopify or the item is excluded. A negative quantity counts as zero and is shown to you.
Compared with other ways
Without Diffa, inventory is usually booked by hand once a year after a stock count. Booking it continuously takes an inventory module in the accounting software and an integration with the store. With Diffa the books follow the inventory every month, in the same integration that books the store’s orders. Voucher and inventory report remain as support for the year-end accounts.
Which stores
Shopify today. The inventory value is booked in the accounting software you connected to Diffa, the same one as the orders. Other e-commerce platforms are added as their integration is built. Their page says so.