How Do I enter closing stock?
regards
Janice
I assume that when you make stock purchases you allocate to the 'Cost
of Goods Sold' account.
Firstly, create a new 'Inventory' asset by clicking menu File > New >
Account (ensure the 'Account type' is Asset).
At the end of each accounting period, click menu File > New > General
Transaction. Then enter these details:
a) If your stock level has INCREASED: Journal Memo should be:
'Adjustment for Increase in Stock'; From Account: 'Cost of Goods
Sold'; To Account: 'Inventory'; Amount: The net increase in the value
of your stock over the period.
b) If your stock level has DECREASED: Journal Memo should be:
'Adjustment for Decrease in Stock'; From Account: 'Inventory'; To
Account: 'Cost of Goods Sold'; Amount: The net decrease in the value
of your stock over the period.
You can see the balance of the Inventory account over time in the
Account Activity screen (click menu Window > Account Activity)
