How to handle stock and profit?

Maybe this is a stupid question, but I still need to ask :smile:

I started my business (selling my own book) last year via a Kickstarter campaign. Now I do my administration in Manager and find I problem that I do not completely understand.

Last year I got the funds from kickstarter and also I payed the books. I have put the books as inventory on hand (there were more books printed than sold and I want to keep track of the remaining stock). Now somehow the amount i payed for the books is not completely withdrawn from the profit of 2015, so I get a much higher profit calculated by the program as there is in reality because the costs were already paid in 2015. Can I somehow tell the program to see the costs as an purchase invoice and then raise my stock in such way that all costs are counted for 2015?

I hope the question is a bit clear. It’s hard to explain…


Think I already found a solution… I put the purchase invoice normally and then added an inventory item with 0 costs (as they are already made). This seems to work…

When you paid for the books, how did you record that transaction in Manager?

What you are trying to do seems to be a contradiction.
On the one hand you want to fully expense the cost of printing the books, while on the other you want to manage unsold books through Inventory. You can’t have it both ways.

Lets say you had a 1000 books printed at $1.00 each. Therefore Inventory would be 1000 & $1000.
If 600 were sold then the cost of goods would show $600 and inventory would show 400 & $400.
Your cost of goods sold can’t show the other $400 until those books are sold.

If you want the cost of goods sold to be $1000 then inventory can’t have any quantity because you have written off the total cost. So depending on the values and quantities involved you need to decide which is best

If you elect for total write off, then perhaps a Stock Card could be used to manage the stock on hand.

I looked a bit further and it seems you can handle it two ways for the taxes. One way is to use a stock value. In that you postpone the costs you made to the year the books are sold. The other way is to apply the costs directly and don’t give a value to the stock. As this book is the only item I sell and because it was a one time (at least for a while) thing I decided to use the last. So now I have given a value of 0 to the stock. Than the inventory basically works as a stock card. I can deduct all the costs at the year of the printing. This will of course result in more taxes when the books are sold, but I will take that for granted.


Lubos: I record it as an purchase invoice. I added a second line adding inventory on hand, but with 0 value now.