I like your software. I couldn’t find function to record inventory stock of goods. Can you help?
If you need to enter opening balances for your inventory items, go to Settings, click Customize button to enable Conversion Balances module. This will allow you to set opening balances for all your accounts including Inventory on hand.
So under Conversion Balances, click Edit to Inventory on hand, this will give you list of your inventory items so you can set opening quantity/value per each inventory item.
Also check Documentation tab in the program which shows how to record all common inventory transactions such as sales, purchases, returns, write-offs and other adjustments.
Why inventory stock record doesn’t deducted automatically after sales. For example I purchase 100 pieces of books from ABC company & sales 40 pieces. But the software doesn’t show the remaining 60 pieces. How to maintain this record?
Can you post screenshot of how you categorized the sale of inventory?
I didn’t find Conversion Balances under Settings → Customize. Is there a new way to write in the opening quantities?
Might be pushing my luck here… but is it possible to have different opening balance dates for different inventory items?
I suppose I’m afraid ofthe opening balance date causing problems down the road. Hopefully this is nothing to worry about.
I suspect I will probably never have to… it’s just that I’'d like to know what to do if the business is given goods for 0 cost, but so I can still tell Manager what they’re worth. (So the cost of 0 and the value of say $2 are both accounted for.)
If value is $2 but you have received those items for free, then you could record this as a journal entry.
- Debit
Inventory on handwith $2 - Credit some income account such as
Donations receivedor something like that with $2.
In double-entry accounting system, you can’t create value out of nothing. The acquired inventory would generally decrease your cash balance (e.g. Cash at bank), increase some liability balance (e.g. Accounts payable), or in this case increase income (e.g. Donations received) etc.
Another way to think of this is that the purchase price of the inventory items (that is, the cost of goods sold) is zero. The sales price is $2. So gross profit will be $2. No different than if purchase price was $10 and sale price was $12. Inventory is normally valued at the cost paid, including any taxes and freight/shipping. The presumption is that if you paid nothing for it, it’s worth nothing until a sale proves a customer is willing to value it more highly. Thus, you make a profit. Likewise, if you paid $10, but no one was willing to buy it at more than $8, you would sustain a loss. But I don’t see a reason to create a donations income account. I believe the key phrase was @Jojo’s remark about telling Manager what inventory items are worth. Within the accounting system, they are worth what you paid–nothing. Only when they are sold will they be worth more or less. Accrual accounting establishes the company’s position as of now.
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This is where I’m coming from: quite a few of goods that I have bought under my own personal name (for the prototype being made) will be ‘given’ to the company. I suppose the http://www.manager.io/guides/miscellaneous/setting-up-opening-balances/ method will be fine, though I’m afraid that if I have to do it on different occasions that I’ll have to put a false date which may cause problems later on.
Cheers
Actually I suppose I can just change the Opening Balances date whenever I have to write in stock, and that it won’t cause problems down the road?
@Jojo, thanks for the additional insight on what you are doing. The easiest way to handle this might be via an expense claim. Expense claims are used to report company expenses paid from personal funds. If you are an owner, your personal purchase of prototype goods is effectively a contribution of capital. Enter an expense claim, allocating to the appropriate expense account, such as Supplies or some specially created category. At some future time, you can reimburse yourself or transfer your contribution to your capital or owner’s equity account (depending on how you have set up your chart of accounts).
You should not enter these prototype goods into inventory, because they are not goods held for sale. Depending on your local tax laws, you may have to amortize them as research and development costs, so you may need to create a special account category. Decisions like that should be referred to your accountant or tax advisor.
No, please. Don’t do this.
Double-entry accounting is about recording all transactions within your business as they are happening. Opening balance date is your starting point which sets opening balance for each account (not just inventory items). If you are new business, you shouldn’t even use opening balances. It is mostly used by businesses which are switching from another accounting system. If you are new business, your opening balances are zero and there are no opening balances to be set.
Previously opening balances were actually called “conversion balances” in Manager to reinforce the purpose of this module that it should be used only by businesses “converting” from another system. The only reason why I have renamed it to “opening balances” was that it is terminology used by major brands (Quickbooks, MYOB, Sage etc.) but retrospectively it could have been bad move.
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I had that problem as well. Check the start date in your settings.
My reports we leaving out anything generated before the start date declared there.
I changed the date and it fixed everything.
Hope this helps.
Link not working…
Why inventory stock record doesn’t deducted automatically after sales. For example I purchase 100 pieces of books from XYZ company & sales 40 pieces. But the software doesn’t show the remaining 60 pieces. How to maintain this record? Please explain
