I'm doing my first year accounts for a small business in Sage Instant Accounts. I'm a little bit confused about calculating my closing stock position and hope some of you may be able to offer some advice.
I have gone into my Sage nominal hoping to just use my Total Purchases acount for the stock/inventory total and then just work out what amount of inventory we had left at year end. We sell variations of the same product at the same price so I guess this should be quite be straightforward (e.g. £10,000 of purchases in year, 30% of stock left, closing inventory amount = £3,000). However, I've realsed that my Carriage nominal 5100 includes both the following:-
1. shipping charges we paid to get goods from asia to UK (which should be included as part of our stock/inventory cost if i understand correctly)
2. shipping charges we paid to send individual goods to customers when they placed an order
Was I wrong in using the same 5100 nominal for both of these types of carriage charges? If I used Total Purchases as my inventory value, adjusted for the units sold before the year end, it would be incorrect as I've alos included the cost of posting these individual items to out to customers?
