Buying/selling inventory

1

When I create a new purchase order, and then create a sales invoice, how do i assign the products purchased to that sales invoice?

I purchase a product, how do I now sell that product?

In other words, sell the stock I added as an asset when I created and paid a Purchase Invoice.

I need to move it out of an asset (stock) and allocate it to a sales invoice.

If the software cannot do this, then cold it be added?

This is a very important feature that is needed, because if an item is purchased for resale, there has to be a way to show the invoice paid, and be able to allocate that stock to an invoice for sale.

When an item is added to the Purchase Invoice Items, it should also appear in the Sales Invoice Items. Some things that are purchased are sold, so is there a way to move the item purchased from stock to Sales?

2

If you are talking about inventory items, don’t use Sales invoice items and Purchase invoice items modules. Download the latest version version (14.2.49) and look under Documentation tab at the top which explains how to purchase/sell inventory items and more…

3

Thanks, but a little confused.

If I have purchased an item, I have to raise a PURCHASE ORDER, then PURCHASE INVOICE, in order to show the item and VAT.

When I enter the item purchased do I put it under a different account on the PURCHASE INVOICE?

Is this correct?

4

I think I have it…

  1. Create an inventory item
  2. Create a new Purchase Invoice
  3. use Account “Inventory on hand” and select Inventory item
  4. Create a Sales Invoice
  5. use Account “Inventory on hand” and select Inventory item

Is this correct?

So my profit and loss, should now show these items as sold?

But in my summary it shows Inventory on hand has a value, but all items have been sold? Will this clear when the invoice is marked as paid?

Under income, there is no value by Sales of inventory items.

On my invoice I have listed the items, with the right quantities but £0 as sell price, because all these items are sold as a single part:

Description…Qty…Unit price…Amount
RACKMOUNT CASE…6…0.00… 0.00
PC PSU…6…0.00…0.00
WESTERN DIGITAL 2TB HDD…12…0.00…0.00
WESTERN DIGITAL 500GB HDD…6…0.00…0.00
GEFORCE GRAPHICS CARD GTX650…6…0.00…0.00
INTEL i7 CPU…6…0.00…0.00
MIC/SFT/1Q6…6…0.00…0.00
CORSAIR 2X2GB DDR3 RAM…6…0.00…0.00
WIN7…6…0.00…0.00
All parts and labour as per specification…1…12,000.00…12,000.00

Any ideas?

Thanks

5

You can’t use Purchase Orders module to buy inventory because purchase order has no impact on your accounts.

The most common way to purchase inventory is through purchase invoices but that’s not the only way. In fact, you don’t have to use any module to buy inventory. Purchase of inventory can entered even as a journal entry by debiting Inventory on hand account.

Now back to your issue, when you are selling inventory, you need to use different account - Sales of inventory items. It’s not possible to select Inventory on hand account on sales invoice anyway.

6

So is this right?

  1. Create an Inventory item
  2. Create a new Purchase Invoice: use Account “Inventory on hand” and select Inventory item
  3. Create a Sales Invoice: use Account “Sale of Inventory item” and select Inventory item

I want to keep track of “Purchase Invoices” due to VAT and track of individual items purchased, then sell those items.

Is the procedure listed above correct?

7

Yes, that’s correct.

8

Thanks Lubos… always appreciate your work!