Gold Retail

1

I recommend my friend to use Manager for his Gold Retail business.

Gold Business is not accounted by currency and instead is being accounted by the weight of the Gold, even if you have 100s different products.

When someone start a Gold business they would calculate the capital by the weight of the Gold not the cost.

Gain/loss is being measured by calculating increase/decrease of the Gold itself; for example if the starting capital is 10 Kilo of Gold and after one year the available Gold is 12 Kilo, then the profit is 2 Kilo of Gold.

Of course there is money involved, for Gold Manufactures, Operation Expenses, sales.

So the question is, is it possible to know the total weight of all inventory Gold products?

This is how he explained it to me, I hope it is clear enough?

2

The only way to know the weight of all gold products in inventory is by treating them all only as raw gold and designating the unit name as grams or kilograms. Then, all transactions must be entered in terms of weight purchased or sold. This would not allow you to track, for example, rings, necklaces, bracelets, coins, or ingots (whatever your friend is actually selling).

But your friend is seriously misinformed. Profit does not consist of the change in quantity of inventory. And inventory is not capital. In your example, despite the increase of 2 kg, the business could be bankrupt or unprofitable. Keeping track of the weight of gold in inventory is not accounting, although that knowledge could be a byproduct of good accounting.

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