Whats the best way on the system to apply a drawdown on inventory and adjust cost of sales when making product sales?

Question asked by Ana Urbina 11 years ago

As an eg. If i buy 10 items that i intend to sell, i then sell one of those items, drawdown my stock levels.
In the system what is the best way to account for this in terms of inventory, revenue and cost of sales?

4 Replies

Hi James,

Do the 10 purchases items make up 1 sales item?

Ill give you a more detailed example.
I buy 10 items on a given day. I have a stock of 10.
I then sell those items one by one at random times during the following few months.
Whats the best way for me to account for this in the system?

Maybe i should be clearer.
Ideally i think entries should be as follows

Purchase of goods
Cr Cash
Dr Inventory

Sale of goods
De Accounts Rec
Cr Revenue
De Cost of sales
Cr inventory

whats the best way to do for this to be relatively automatic....i have the stock figures working correctly but sales do not correctly drawdown inventory!

At the moment the stock feature has limited capabilities - the only things you can do with the stock tool are -

  1. Auto populate invoices with details of a stock item.
  2. Keep track of the amount of stock you have.
  3. Keep a track of which invoices have stock items on them.

    Stock valuation is something that would need to be added manually via journals (Tools>Journals)

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