If someone else buys stock for a new company,
the amount is put into a loan account in the balance sheet where does the other side go?
They have put all there inventory items in.
I havent done inventory before so I am not sure
How did they post the inventory transactions?
By the looks of it they just entered them in to inventory items
But what did they enter - opening stocks, purchases?
Post a copy of the summary page and balance sheet
Can you post the transactions associated with one of the items?
she has not sold any yet and these 2 are the only thing she has in manager to do with the inventory
Pluse the order and goods recipted in
Right, I see where the figures are coming from.
That is completely wrong.
First of all, the journal entry isn’t balanced - the red figures are a clue that something is not right.
A Goods Received note is used to record the reception of goods which have been purchased using a purchase invoice. The use of Goods Received Notes and Delivery Notes is part of the advanced inventory management proposed by Manager and should only be used once you have a clear understanding of all of the implications - once used, you can not go back.
Please read the Guides on Inventory Management.
Can you post a copy of your Summary screen?
I know the journal entry is not balanced thats why I am asking where the other side should go so I can balance it.
do you mean this summary screen
It looks like what has happened is that the company has purchased items from Sunvalley in return for a loan. If that is what happened, this is really no different than buying on credit with a purchase invoice (possibly with a faraway due date). So you can either:
- Enter purchase invoices
- Use a journal entry, but in this case, you must credit the loan account and debit Inventory on hand for each inventory item.
Your problem is that you have no record of acquiring the inventory items. That’s why you own zero of everything despite having received them with goods receipts. And your negative quantities to receive mean you’ve magicked them out of thin air.
The suspense account is holding the unbalanced amounts
The use of the Goods Received Note is completely wrong.
You can use a journal entry to record the transactions
Credit the loan account with the amount
Debit the Inventory on Hand / Item accounts with the amounts and value of the items received.
But I do not advise this - it is not the correct way to record the transaction imho
Can you give some details on what is being proposed - is someone buying the inventory and giving it to the company? or are they giving the company a loan and the company is buying the inventory?
So what she has done is only partly use the inventory and not used it the way it is supposed to be used?
So the other side of the journal entry should go to the account "Inventory - cost " under the expenses?
Her brother has bought the stock for her to get her started and it will be as a loan. I was only asked to look at the GST then I noticed the journal entry and that it was not balanced so looked further but because I dont deal with Inventory on a day to day in manager I only do year end accounts and tax returns I am not up to the play with inventory. I am not doing her accounts and am not being paid for my time to sort it out .But I would like to point out to her what she has done wrong if I can.
Dear @wornout,
first of all you should have clear which are the transactions you need to register. From what I understand:
- You “buy” some items without paying them. So you will have a debt Vs. a supplier
- You convert this short term debt into a loan
That said:
- Emit a purchase invoice Vs. your supplier
- Register a journal entry to move your debt from accounts payable to your loan
Ok when I do a purchase order what account am I supposed to use is this where I use the "Inventory - cost " under the expenses. Oh wait its not in the drop down do I just use materials in expenses? or make an account called stock under expenses
Not a purchase order - a purchase invoice
Put the item code in the Item and the account “Inventory on hand” will be added
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Ok I think I will get her to do that because you have to do each item line by line and there is heaps of them.
Thank you for all your help
Someone needs to get a better understanding of how accounting work and how to handle accounts with Manager or it will end up with an awful mess trying to sort out the accounts and tax returns at the year end.
Yep and I am not prepared to spend the time on it for free she needs to read the guides just like everyone else that starts of useing manager.As for knowing how accounting works I do I am an accountant but just dont know all the day to day running of manager I usually get clients data already done their book keeper has done it or they have done it themselves.I dont audit and they sign a disclaimer to say what they have given me is correct.
I am always getting past data ie years data at the end of the year not the real time data so I not up to the play with Book keepers jobs