My inventory purchase price is 47.50 per unit from supplier. I paid total 445 as delivary cost for total 3000 units. I sale inventory 49.50 per unit. When i make an invoice it just count 47.50 per unit and show 2 as profit in net profit tab. Acctually I could’t understand how to less the delivery cost from net profit. Is there any option for it ?
Which account did you use to allocate delivery cost when you purchased inventory items?
I did not use any account, I just added a line and wrote Delivery Cost in description. Which account should I use to allocate Delivery Cost in the time of purchasing inventory items ?
You could create new expense account under your
Chart of accounts called delivery costs. Then allocate the delivery costs to this expense account.
This method will show delivery expenses on your P&L at the time of purchase.
The other method (more correct) is to capitalize your delivery costs so they are included in your cost of inventory. In this case, you would simply add the delivery costs to the purchase price of inventory item so if the purchase price was 47.50 per unit and delivery cost was 0.14833 per unit, then your purchase price was really 47.64833.
If I use your second method the supplier amount increse in purchase invoice. Is there others way to maintain it ?
I want to know another things that, which account I have to use for allocating daily sale’s money (not only profit) in Bank account ? I did use sale account but it show whole money in net profit.