Paypal and Stoc Control

Question asked by Andrew Pawley 9 years ago

I am trying to manage my stock control in clear books but it is reporting a massive number and is throwing off my corp tax bill.

All my sales are done via paypal and they come in via the load. I assign all of these into revenue minus the paypal fee which is annoying that clear books does not split this into a different box.

My issue is how do i assign the stock i have to this order? as in effect my stock holding should be massively less but it isn't. I can adjust it through an adjustment.

Can i assign the stock to an order?

Write reply8

8 Replies

The system can handle basic stock control but it can't it like you want to no.

Presumably with those 60-70 sku's you've got a decent ordering system in place that perhaps comes with a stock control module? If so, i'd personally be pulling a report from that each month/quarter to make a quick adjustment (you just need a reversing journal, takes less than 60 seconds to create).

In my humble opinion the problem with trying to monitor stock levels through a system like this is you very quickly complicate things and make a rod for your own back. I'm a firm believer in starting with a view to potentially scaling up, I doubt the system would cope with what you've got planned (or you wouldn't more likely).

Best answer
9 years ago

Hi Andrew

Let's start at the beginning to make sure I understand everything properly. Could you try explaining what you mean by this first:

I assign all of these into revenue minus the paypal fee which is annoying that clear books does not split this into a different box.

9 years ago

Hi There,

So I am purchasing stock and this is getting added into the accounts as an asset.

I sell the product on ebay and the customer pays for the stock. This then appears as a revenue however i need to allocate the asset i have just sold to the payment that has come in via paypal. How do i do this?

As at the moment I am reporting profit that is way to high becuase the item I have just sold has not been linked to the paypal transaction and added to cost of sale.

9 years ago

Ok, so when you're creating the bill for the stock purchase, you're posting it to a balance sheet account called 'stock in hand' or something similar as opposed to 'purchases' within the profit and loss?

Sorry to sound all technical, just trying to understand your current process that's all.

9 years ago

Yeap correct. When i create the bill i post the stock and value to the the balance sheet section under asset called stock on hand.

9 years ago

Ok, do you NEED to do that? Are you over complicating things perhaps? How about posting it straight to purchases within the P&L and then making a monthly/quarterly/annual adjustment to cater for any stock in hand?

9 years ago

The issue is that we currently have 12 different ranges, each with 5 to 6 different skus and we are expanding. I need at any given point to be able to be able to print off an asset report just incase i am audited. I have had this happen before and it was a nightmare trying to explain to HMRC if they waited 90 minutes while I made the adjustment to get them report. It didnt go down to well.

Also the other issue issue is that at month end i would have to make an adjustment out from P&L to the balance sheet. Then at the start of the month move it back again. Also i would have to move all non sold stock out to the balance then back to the P&L.

From an audit point of view is there no way to assign the actual good cost that i physcially have sat to the sales order?

If the system can't handling this i will have to either go back to excel or look at another system but just adjust for this in the mean time.

9 years ago

The system can handle basic stock control but it can't it like you want to no.

Presumably with those 60-70 sku's you've got a decent ordering system in place that perhaps comes with a stock control module? If so, i'd personally be pulling a report from that each month/quarter to make a quick adjustment (you just need a reversing journal, takes less than 60 seconds to create).

In my humble opinion the problem with trying to monitor stock levels through a system like this is you very quickly complicate things and make a rod for your own back. I'm a firm believer in starting with a view to potentially scaling up, I doubt the system would cope with what you've got planned (or you wouldn't more likely).

Best answer
9 years ago

The stock control is done all via excel at the moment as that is where my back ground is from. So the excel document is rather large and with a new supplier coming on board that will have over 2000 different SKUS i'm looking to automate as much of this as possible.

So how would i complete this type of journal and ensure that the stock is correct. I have order 100 units of, 5 different sizes and 5 different patterns. Each of these is added to the accounts as an asset by SKU by SIZE. So if HMRC comes a knocking i can pull out a list at the last accurate point and say this is what i had in stock.

How would i make a journal from the balance sheet to the P&L? I need to move the exact items i have sold from the balance sheet to the P&L for tracking.

The reason being is that sorry if this is harsh but this system is great if your after a standard account system that is no better than excel. All you would need is some pivot tables and charts and you could get the same result. For e-commerce with high volume, fast moving lines i think i will invest in a different solution for the future.

It's a shame as the system has a lot of potential

9 years ago

Reply to this question

Attach images by dragging and dropping or upload
 

Your comments will be public and can be answered by anyone in the Clear Books community.

Find out what we do and who we are

Apps

Company

Social