Can someone help? Im a bit confused with stock posting, I have to post once a month opening stock and closing stock. Can you advise which nominal ledger I should debit and credit?
There is one balanace sheet account and three expense accounts for stock in your Nominal ledger,
How was it posted in the past.
presuming you are not a manufacturer (lets say you are a retailer selling fluffy bears)
Normally
when purcahse stock
CR Creditors (or bank if paid up front) DR 1000 Stock
a Bear is sold.
when sold (post 2 journals)
CR 1000 Stock DR 5000 COS
and
CR 4000 Income DR Debtors (or bank if customer paid upfront)
(if a low value fluffy bear is stolen by a kid in pigtails) (disclaimer: fictional character, not based on true person. Just coincedence if you stole a teddy and had pig tails when you were a kid)
Following on from Dalbir and his fluffy bears ........Because Sage doesn't automatically account for stock when you record purchases/sales you will normally have to do the stock journals manually.
If this is the first time you have posted stock journals, i.e. your first year of trading or recording stock then there will be no opening stock and you will only need to post closing stock. So you DR 1001 Stock and CR 5210 Closing stock with the stock value.
The next month the closing stock of the previous month will become the opening stock so when you do the next month's journal you will have to reverse the journal you did before but substitute the closing stock for opening stock, i.e. CR 1001 Stock DR Opening stock.....then DR 1001 Stock and CR Closing Stock with the new month's figures. For subsequent months the journals will be as follows:-
CR 1001 Opening stock @ 1 Jan £xxxx DR 5200 Opening stock @ 1 Jan £xxxx DR 1001 Closing stock @ 31 Jan £xxxx CR 5201 Closing stock @ 31 Jan £xxxx (Dates for example only)
If you are running a restaurant and do not have a sophisticated accounting system with stock module.
Maybe best to book all purchases to COS (except for vintage wine bottles- treat those as we have with fluffy bears).
Journal (1) CR Creditors (or bank if paid up front) DR 5000 COS
Then do a stock take at end of a period (lets say month or quarter) and take out that stock value from COS:
Journal (2) CR 5000 COS DR 1000 Stock
Remember to reverse journal (2) in the next stock take period ( see Journal(3) ) prior to entering Journal (2)-new period, when you do the next stock take
Journal (3- posted in new period) DR 5000 COS: value of last stock take CR 1000 Stock: value of last stock take
The reason for journaling your stock like this is because with restaurants, you buy packets of ingredients but don't necessarily use the whole packet in one go and also stock turnover is high for well run restaurants (with the exception of vintage wine bottles- which are sold as a whole bottle and are expensive)
........Because Sage doesn't automatically account for stock when you record purchases/sales you will normally have to do the stock journals manually.
