# How to create accounts: purchases, beginning inventory and ending invty

**URL:** <https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792>\
**Category:** Uncategorized\
**Created:** [May 3, 2022, 7:06am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792 "2022-05-03T07:06:25Z")\
**Posts on this page:** 8\
**Page:** 1

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**Author:** ![venjo](https://avatars.discourse-cdn.com/v4/letter/v/d26b3c/32.png) [@venjo](https://forum.manager.io/u/venjo)\
**Post date:** [May 3, 2022, 7:06am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/1 "2022-05-03T07:06:25Z")

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Hello Forum,

Kindly help us how to format the Cost of Good Sold like pattern below:

Less: Cost of Sales

Purchases  
Add: Beginning Inventory  
Total Good available for sale: \_\_\_\_\_\_\_\_\_\_\_\_\_\_  
Less: Ending Inventory  
Gross Income: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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**Author:** ![tony](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tony/32/17755_2.png) [@tony](https://forum.manager.io/u/tony)\
**Post date:** [May 3, 2022, 8:06am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/2 "2022-05-03T08:06:59Z")

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You can review the Chart of Accounts Guides - [Guides | Manager](https://www.manager.io/guides/)

 ![image](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/3X/1/6/16d67ed737d5c8118517faab01f29458930269b6.png)

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**Author:** ![venjo](https://avatars.discourse-cdn.com/v4/letter/v/d26b3c/32.png) [@venjo](https://forum.manager.io/u/venjo)\
**Post date:** [May 3, 2022, 8:14am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/3 "2022-05-03T08:14:29Z")

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Thanks Tony I tried everything chart of accounts guide but to no avail.

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**Author:** ![Joe91](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/joe91/32/35781_2.png) [@Joe91](https://forum.manager.io/u/Joe91)\
**Post date:** [May 3, 2022, 9:06am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/4 "2022-05-03T09:06:24Z")

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Manager uses the Average Cost method of valueing inventory and calculates the cost of goods sold based on purchases

If you want to use a different, you can but you will have to use journal entries and you will not be able to use the built-in inventory valuation repirts

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**Author:** ![venjo](https://avatars.discourse-cdn.com/v4/letter/v/d26b3c/32.png) [@venjo](https://forum.manager.io/u/venjo)\
**Post date:** [May 3, 2022, 9:13am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/5 "2022-05-03T09:13:47Z")

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Thanks Tony I explored and it worked. I will test using journal entries and if it works using perpetual inventory system.

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**Author:** ![tony](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tony/32/17755_2.png) [@tony](https://forum.manager.io/u/tony)\
**Post date:** [May 4, 2022, 1:42am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/6 "2022-05-04T01:42:37Z")

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The specific guide that shows you how to create Groups and Totals to build a Trading Statement within a Profit & Loss Statement is - [Build a chart of accounts | Manager](https://www.manager.io/guides/9181).

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<div class="post-metadata">

**Author:** ![venjo](https://avatars.discourse-cdn.com/v4/letter/v/d26b3c/32.png) [@venjo](https://forum.manager.io/u/venjo)\
**Post date:** [May 4, 2022, 5:53am UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/7 "2022-05-04T05:53:21Z")

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Thanks Tony grateful to your suggestions. It’s just a matter of exploring and testing. This software is such friendly to use.

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**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\
**Post date:** [July 5, 2026, 8:13pm UTC](https://forum.manager.io/t/how-to-create-accounts-purchases-beginning-inventory-and-ending-invty/40792/8 "2026-07-05T20:13:31Z")

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Closed on July 5, 2026, 8:13pm UTC

Uncategorized topics older than 3 years with no recent activity