I cannot get my head round this one, too many late nights!!
I have taken on an account and they are using Sage from the beginning of the financial year (01/02/14). There are no opening balances yet as they were doing everything manually but I have a stock figure as at 1st Feb (£20,450) a stock figure for 28th Feb (£20,450) and a stock figure for 31st March (£18,750).
I am able to produce basic P&L accounts for each period by using the opening balance minus closing balance plus purchases but I can't get my head around how to journal this in sage?
So below is the journal that I think I should I do for each period but at the end of Feb P&L I am showing a credit on stock which creates a minus £20,450 on the purchases which is not correct?
1/2/14
DR 1001 (Stock) £20,450
CR 5200 (opening stock) £20,450
28/2/14
DR 5200 (opening stock) £20,450
CR 5201 (closing stock) £20,450
31/3/14
DR 5201 (closing stock) £1,700
CR 1001 £1,700
I am missing something but cannot think, any help would be greatly appreciated.
Your problem is your first journal...oh, and the last...lol If this is the first time you have started to enter things on Sage, you cannot start with your opening stock figure in the BS coupled with an opening stock figure in the P & L. The opening stock figure will have to be entered as part of the opening BS figures when you get the TB from the accountant. You will need to start with the closing stock figures at the end of February. (Incidentally why is the closing stock figure for end of Feb the same as the opening stock figure for the beginning of Feb?)
In your last journal you have just used the difference between the closing stock for 28th Feb and the closing stock for 31st March when you should have used the figure of £18,750 for the closing stock.
Your journals should be as follows:-
Stock 28/2
1001
20450
Closing stock
5200
20450
Stock 1/3
1001
20450
Opening stock
5201
20450
Stock 31/3
1001
18750
Closing stock
5200
18750
For March you will then have a figure of £18750 in your BS and a movement on the P & L of £1700 in the stock. Hope this makes sense?
Do you need this monthly information for management reports?
