Hi, We purchase shares under my company and there was one share from last financial year that our accountant journaled into our books.
This one is giving me grief as the average cost of the inventory item is incorrect. I cannot work out where it is coming from and it appears to be making my profit from selling a portion of these shares incorrect.
can anyone please assist?
Thank you
You cannot use the inventory module for tracking share values. Inventory for resale in a business can be valued using several accepted methods of valuation including weighted average cost. I would not expect this basis for the valuation of inventory to be acceptable in the calculation of the profit on the sale of shares.
You can Google how best to deal with shares bought in other companies and decide if you want to use the equity or cost method. Journal entries are a no-no in both situations.