I have just started to use Solar having changed from Quickbooks after 14 years. Mainly to simplify things. I do, however, have 10K of existing stock. I have looked at 'how-to-track-changes-in-stock-level' I understand that I can create a new asset account called 'Inventory' and enter my existing stock value. So, when I purchase new goods on a 'Purchase invoice', and make the account 'Cost of goods sold' it increases the value of COGS. When I finish a job, the invoice might be 50% stock used and 50% labour. Do I have to add all the stock bought in a month and make and adjustment and also add all the stock sold in a month and make an adjustment here too? I do need to keep things simple but need to keep a stock value.
Hi Rob,
Although the invoices you give to customers might say '50% stock', you should still allocate the invoice line to the 'Sales Income' account.
Only when you record a purchase would you use the 'Cost of Goods Sold' account. In this way you will only need to record one stock adjustment transaction at the end of each month.
I hope this makes things a little clearer - let me know if you need more information.
Cheers,
