Hi, I recently bought a load of mixed stock which I’m currently sorting through. I’ve looked in the guides and can see how to do the cash purchase i.e allocate to inventory on hand, but I’m a bit confused how I go about creating the inventory items and allocating a purchase cost once I’ve extracted them from the bulk purchase. For example, if I paid £200 for a mixed box of nuts, bolts, screws, tools, etc and found I had 500 each of the nuts, bolts and screws and 30 pieces various tools, how would I create the inventory items with each one showing the quantity available, and record purchase costs against these so I could either sell the inventory as individual items or use the them to create kits, or packs? Hope this makes sense. If anyone has any ideas I’d appreciate it.
Is this once off? Unless you regularly purchase inventory items, don’t use inventory. For small amounts like £200, you can just allocate the purchase to general expense account.
I just think it’s silly to have an inventory item for screws, nuts and bolts. I wouldn’t bother inventorize these and just put them under some expense account. The same goes for various tools if they are not for re-sale.
Yes, this was a one-off purchase of a load of stuff from a shop that closed down. Thanks for the advice, I’ll have a think and see if this fits with what i was going to do with all the bits and bobs.
In that case definitely don’t bother with inventory. Allocate it to some general expense accounts such as Tools or Materials etc. It’s really a small amount so there is no reason to capitalize it and miss out on potential tax deduction.
Thanks Lubos, much appreciated, I’ll get on it. Thanks for you help.