Stock not showing in current assets

Problem reported by Sarah Barouhiel 9 years ago

Hi

I turned on stock/inventory management feature. I set up products for "both" purchases and sales with the right purchase price and sale price. When looking at inventory reports it seems to be all linked correctly (since stock level is updating based on sales).

However in the balance sheet I can't see my stock in current assets. Also, in my P&L, the total price paid for the stock shows as a cost of sale (even though I haven't sold all the stock yet).

I expected to see the purchase price of only the goods I sold under cost of sales. And in the balance sheet I expected to see the inventory/stock valued at cost as a current asset. Is it possible to achieve this with clear books and, if so, how?

Thanks

Sarah

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2 Replies

I don't have any clients who manage stock levels so I might be wrong but I don't think what you're looking for is available automatically, only with manual intervention.

9 years ago

Hi Sarah,

Currently the stock feature does not record your stock valuation - this will need to be updated manually by journal.

You might want to discuss this with your accountant however we suggest that you enter the stock valuation every month using Tools>Journals. For example, say in August stock was worth £2,000; but was £5,000 at the end of September

Dr Inventory £2,000 Cr Cost of Sales £2,000

We suggest you date this on the 31st August.

On the 30th September create a journal to reverse out the August inventory balance:

Cr Inventory £2,000 Dr Cost of Sales £2,000

Finally journal the September valuation:

Dr Inventory £5,000 Cr Cost of Sales £5,000

Both the latter would be dated 30th September.

9 years ago

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