Hi there i came across this software and i want to learn how to use it. can someone help me with how closing inventory is treated in order to get your profit.
let me give an example
suppose you buy goods say 50 unites for 10000 at a unit price of 200. during the month you sell 20 at a unite price of 25 giving 500. how do you use manger to get your pofit and closing stock
thanks
As long as you are using the built-in Inventory Items tab, Manager uses a perpetual, average cost method for valuing inventory. As items are bought and sold, Manager tallies quantities on hand, and also now has ability to track items purchased but not yet delivered, etc. Profitability is available on a per-item basis via a built-in report.
can you help me with the steps on how to input the inventory items into manager, after creating my inventory items , i then created a purchase account.
i debited purchases and credited my cash. but i realised i have duplicate figures in my inventory account when i tried producing the balance sheet. secondly i then went on to produce a sell invoice and then used journal entries to credit sales and debit cash assuming they were cash sales. but the PL is not giving me the result i am expecting.
can you help me with the steps to follow
thanks
You shouldn’t be using Journals at all for any of the transactions, you shouldn’t be creating a purchase account as all inventory purchases are posted to the default BS “Inventory on hand” account via the “Purchase Invoices” tab. For the cash sale you would use the Cash Accounts - Receive Money.
The Purchase Invoice
The BS after
The Cash Accounts - Receive Money
The BS after
NOTE: all the accounts displayed are default accounts - none were created via the Chart of Accounts.
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Thanks Brucanna. hope it will resolve my problem this time