First things first… Thanks for building this amazing software. It is so easy and intuitive to use Manager. I do not come from a commerce background and yet it has made it easy to run my small business.
So here’s the problem. How to handle the inventory that I or my family buys from our own shop. So for example, I got some pens delivered to me by one supplier and it is well stocked in my inventory. Now my kid wants to buy that pen. Technically I have already paid for that pen and naturally, I’ll not sell it at a higher price to my son to earn a profit. How to handle such transactions where I buy from my own shop? Is it Inventory Write-Off? Please suggest
TIA for solutions and please forgive me for my lack of business knowledge.
you can make the sale at cost price if you don’t want to recognize the profit or make the sales with a discount.
for payment side if you paid from cash then you will make Receive Cash if you don’t then you need to offset with owner equity by Journal Voucher
It is possible you would need to allow for inventory taken for private use under your tax jurisdiction. If that is the case you can issue a sales invoice to yourself for the cost of the pen. To clear the amount receivable you can create a journal entry debiting your capital account and crediting the invoice under Accounts Receivable.
One thing you have to understand is that, you are a separate entity from your company. You gave money to your company in the form of capital (it won’t pay back, it will pay you dividends instead).
So
That statement is not true. It your company that has paid for it, though you financed it by providing the capital (equity).
Now with this knowledge you can now go ahead and issue yourself a sales invoice.
And do the journal entry as described above.
The journal entry will reduce the company’s capital, it as if the company is paying back some of the capital it borrowed from you.
Look at from that angle.