Calculating Cost of Sales

[Andre_du_Toit]

As a livestock farmer I don’t buy goods to sell them. I breed the “goods” (cattle) I sell. Therefore I don’t have a Purchase Account. Because I don’t have a Purchase Account I can’t have a Inventory Account which increases with purchases and decreases with Sales.Cost of sales can therefor not be calculated during a purchase or sales transaction. I have to do a actual counting of the stock at the end of the financial period to determine the closing inventory. To calculate Cost of Sales I have to make use of the formula: Cost of Sales = Opening inventory + Purchases - Closing inventory . Can it be done using Manager’s Income Statement? If so, how?

[Brucanna]

@Andre_du_Toit

Can it be done using Manager? If so, how?

Yes, read through this topic where Opening inventory + Purchases - Closing inventory is discussed.

Inventory accounting using Opening Stock + Purchases - Closing Stock

I don’t want to use Inventory items etc. I want it to be turned off but at the same time when i make a sales invoice the figure gets added to the sale and the tax goes to it’s designated account. but where is the stock getting decreased for sales and increased for purchases what steps should be taken to correct this.I should know the position of my stock after each sale or purchase. Please help.