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stock and cost entry

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wellyng13

07 Apr, 2014 01:34 AM

I am running a small cosmetic company. all these while I have outsource my production. Therefore it is easy to purchase from supplier and sell as usual. then pays the supplier and the money in bank is adjusted accordingly. Now I am doing my own production. I buy my own bulk raw materials. Production only uses part of the materials. So the cost of goods is not direct. The questions is;

• how or where should I allocate my entry when i add or produce the stock? without further deducting my bank or cash account.

1. Support Staff 1 Posted by Admin on 09 Apr, 2014 08:42 AM

   

   The stock module in Easy Books can handle stock when you're buying and selling the same stock, but it doesn't handle buying different stock to manufacture into a new product. Here's a different way to handle it:

   I would suggest keeping track of raw materials in a new asset account (in Other assets & Liabilities). When you purchase stock, it's a transaction from your bank/supplier account to this stock account.

   Then when you sell the finished product you have a couple of options. You could create the sales product as a service instead of stock. This means the app will never attempt to add adjustments to your stock account for sales of the final product. By doing this, you'll be able to pick the sales Qty, which will also appear on invoices. The other option would be to just sell using an income account instead of a product. The Qty and Price Easy fields are not displayed on invoices.

   This leaves your asset account at the same value though, which means your P&L figure is reported higher than it should be. To correct it, do a stock take every so often, it's up to you how often you want to do it. With the actual value of raw stock in hand, have a look at the balance in the asset account and add a transaction for the difference, so that you return the asset value to the actual stocktake amount.

   I hope that explains it properly, let me know if you need more help,
   Mathew

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2. 2 Posted by wellyng13 on 10 Apr, 2014 06:53 AM

   

   Hi Mathew,

   I have followed the instructions and quite comfortable with it except;

   > With the actual value of raw stock in hand, have a look at the balance in the asset account and add a transaction for the difference, so that you return the asset value to the actual stocktake amount.
   >

   Do you just use the debt write off entry? for the discrepancy.

   How about the stock report. It seems I cant track my sales anymore. Can’t track which is my most sellable product if I were to switch to service for sales.

   Other than that, how do I copy the whole company with the transactions so I can do a progressive change with the actual current running bookkeeping. I dont want to change the whole thing and find out it is not suitable for my need. and change back one by one.

   Cheers,
   Welly Ng

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3. Support Staff 3 Posted by Admin on 10 Apr, 2014 10:43 AM

   

   When adjusting the stock value I would suggest adding a transaction between that asset account and your cost of sales (or another direct expense account). This will reduce the asset value down to you actual stocktake value and should show an increase in the expense account.

   I would suggest trying these different ideas out in a new business first just so you can see which works for you best. Easy Books isn't designed to handle stock in this way, although it can of course track the financials.

   Mathew

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4. 4 Posted by wellyng13 on 19 Apr, 2014 04:49 PM

   

   HI Matthew,

   Is it possible for me to export the content of easy books to csv and then import it back. I need to make a new business to do some try outs. I cant’ possibly data entry everything all over again.

   Cheers,
   Welly Ng

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5. Support Staff 5 Posted by Admin on 20 Apr, 2014 02:30 PM

   

   Hi Welly,

   Not as CSV for importing, but you can use the backup function to make a backup then make changes you might need to reverse later. The backup will get you back to that point if you need to.

   Alternatively, you could create a new business as a copy of an existing one. This gives you a blank business with no transactions but with all the same accounts as the one you copied.

   Mathew

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6. 6 Posted by wellyng13 on 21 Apr, 2014 04:36 AM

   

   ok.. tq matthew

   Cheers,
   Welly Ng

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7. Admin closed this discussion on 21 Apr, 2014 02:54 PM.