I run a micro business that previously supplied only services. I've recently started to sell self-published books and I'm having difficulty understanding how to manage the stock of books in Sage 50 (UK Version 24). I'd like to explain what I've done so far:
I had 100 copies of my book printed and set up a supplier account for the printers. When they invoiced me I entered the invoice for £1,900 on their account, which has the default code 5001 (Materials & Printing), and later paid this off from 1200.
I entered 100 books on Opening Stock on 5200 and used the wizard to give a current item value and do a stock take at YE.
On the BS I now have a Stock shown as (£1,900). Clearly I've done something wrong but because my understanding of the relationship between stock and cost of sales is shaky I can't figure out what it is. There seems to be very little about this on the web and nothing in my 'Sage 50 Accounts for Dummies'! Please give me a nice Christmas present by pointing me in the right direction.
This is a forum for accountancy professionals but I can give you a couple of pointers. Assuming this is your first year of trade, you won't have an opening stock figure, only a closing one. 1001 should read £551.00
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Many thanks for your reply which is truly in the spirit of Christmas and which explains two things: (a) Why I got some rather frosty feedback this morning accusing me of being a 'freeloader' and (b) where I made a mistake in Sage 50.
