Forum Message

Stock control

HI there,
We are trying to set up our books with your lovely software but we are getting a bit lost trying to set up a stock account. We need to show the value of our stock at the end of a quarter.


Posted by Erin Cox on Jul 26, 2011 6:41 PM BST

Hi Erin,

Glad to hear you like our software!

There several ways to track stock in an accounting system. Here is one method:
http://www.solaraccounts.co.uk/help/how-to-track-changes-in-stock-level.php

However, some users have complained that the above method is too complicated, so here's a simpler alternative:
1. Create a new asset account called 'Inventory', with the opening balance set to the value of your stock at cost
2. When you buy stock, allocate to this Inventory account
3. At the end of each month, record a General Transaction from the Inventory account to the 'Cost of Goods Sold' account for the value of the stock you have sold (at cost price). For example, if you have sold 300 units for £5 each and which cost you £2 each then the amount of this transaction should be £600.

Please let me know if this 'simplified' method makes sense.

Regards,


Posted by Mark McLaren (Solar Accounts) on Jul 27, 2011 8:02 AM BST