Question asked by Katalin Kovacs 4 years ago
Hi, Can someone help me please with inventory management. Based on accrual accounting and perpetual inventory system when I purchase an item (finished goods) for sale I need to record as the following (if I understood right) Debit "Inventory" and "Credit Accounts payable"
when I sell an item: debit "account receivable" and credit "sales"
also debit "Cost of Goods sold" and credit "inventory"
Can someone please advice me how to do this in clearbooks?
I have created a bill for the purchase order - however I am not sure which account I need to choose (Inventory or cost of good sold or other?) Is the inventory: only the buying price of the items or includes all the buying expenses ie. freight, marine insurance, duty, account fees for international payment etc). Can you please let me know what is the entry of the above expenses in clearbooks
Cost of good sold account - do I need to calculate manually in clearbooks and do a journal or there is any easier option?
Thank you for the help in advance