Hi Alisdair, Yes Thank you for the response…!
No It is not that we have a “ruling” as such in South Africa, it is just what seems to be making Logical Flow in the Operation.
By this I mean, I will Purchase Stock from my Supplier, lets say 10 x Items @ R100 / Item.
This I believe should now be recorded as Purchase of Stock as an Expense of R1000.
I now sell this Product at R150 / Item. The next day I sell 2 x Items. Now I believe these Sales of Inventory Items should be recorded as Income @ R150 x 2 = R300 Gross Profit is R300 for these 2 x Sales and Net Profit will now be R100.
The initial Purchases of the Products should already be recorded as the Expense, and the Sales of the Products the Income…
Just my way of looking at it.
By the way, I am using the System for my Small Business and overall opinion is… I Love It !
I just have to be very carefully when looking at the SUMMARY display, to note what are actual Expenses and Income…?