i have post 2 Sale invoices in September and post same 2 purchase invoices but one purchase invoice entered in October and when i see the profit and loss statement , in September the profit was double ,how manager working on sold inventory cost?.
Thanks
You need to furnish more specific information. What do you mean by “post same 2 purchase invoices?” The same as what? The September profit was double what?
In general, Manager posts the cost of inventory sold by transferring the current average cost in Inventory on hand to Inventory - cost when a sale occurs. But specific actions depend on the type of accounting being used. They also depend on quantities on hand. If the quantity owned is insufficient to complete the sale, the transfer will not occur until more inventory is produced or purchased.
So, to understand what is happening in your circumstances, we would need to know exact quantities available, dates of purchases and sales, and so forth.
in September i have sold 250(100+150) inventory of a item in two invoices , at that time i have only 100 pieces available in stock and 150 purchase in October so when i have check the profit and loss statement the 100 pieces cost not reduce in September but it reduce in October while the total sale was occur in September
This is exactly what you should expect, @WAQAS_BASHIR. In order to transfer cost of inventory from Inventory on hand to Inventory - cost, Manager needs an average cost for the inventory item. But since you had only purchased 100 units, there was no average cost because their was no cost remaining at all.
When you purchased the additional 150 units in October, Manager had a balance in Inventory on hand from which to calculate an average cost. So it completed the transaction.