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Post Info TOPIC: How to record purchases / stock holding
NA_AA


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How to record purchases / stock holding
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Apart from ensuring that you account for the correct value of puchases and vat paid, how would you

 

- account for the stock holding?

e.g. if a client is purchasing lots of different products at very low quantity - would you need to match the specific stock item to the sale?

The reason for asking is whether or not the incorrect treatment may affect the stock holding at year end

What is the correct process?



-- Edited by NA_AA on Sunday 15th of January 2012 09:12:10 PM

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Thanks, Nadia.
NA_AA


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Please can anybody help with the query above

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Thanks, Nadia.
Wella


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I would be inclined to do the conventional thing and do a stock take at the end of the year.

Then calculate the gross profit as Sales - Purchases (- opening stock if there is any) + Closing stock. The format is slightly different to that for the P&L but the result is the same

Bill



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