Hi @Neilcanada . Thanks for pointing this out, I'll put it on the team's radar. Although it may cause a bit more confusion with the difference in examples, the steps in this article are still correct. You can replace the wording with Fish Food or Muskoka Chairs and the information will still set you up properly for inventory entry & tracking.
Hey @Neilcanada, that is a great question. You would always be making the adjustment/journal transaction relative to your original purchase price. So lets just say you buy 10 chairs for $100, and then you sell a single chair for $20, you would add an adjustment/journal transaction where you Credit the inventory account for $10, and Debit the COGS account $10.
Hiya - I am just going through these steps but under 'Recording the Sale of inventory', number 1 - the link is broken so I can't double check next steps.
In my case, the CoS is subcontractor time.
So I have invoiced the client, the money has come into my account from her, and I have paid the contractor. I make some money through these transactions. All these transactions appear through bank import. At the stage outlined at the top of my message, I am unclear what to do next. Thanks!
Thanks for pointing that out @KeyboardSmash! We're going to get that fixed. In the mean time, essentially all you need to do is head over to Accounting > Transactions, and locate the income transaction which should be used to mark the invoice as paid.
Once you have located it, select it to re-categorize it. You're going to want to choose the category "Payment made for an Invoice in Wave", followed by the exact invoice you're applying the invoice to, and you should be good to go!
Is there any reason why Wave cannot calculate the unit value of inventory? Since the unit price for my purchases fluctuates, it would be really difficult for me to calculate the COGS whenever I make a sale.
I am an accountant. I just finished trying to convince my client to use Wave to record their sales and receivables.
I use Accountedge to do the rest of their accounting. The client needs to track units of inventory. I will recommend that they use Excel to do it for now but..............
Wave team, nothing could possibly be more important that adding a simple inventory tracking feature.
@aidanlee@Robreis When it comes to adding new features to Wave, a lot of different factors go into it (product development, prioritization, understanding customer needs, and building the actual feature). Simply speaking, I don't have an exact reason as to why this isn't a feature that's currently available in Wave, but this thread has created some eye opening requests from our client base that do, in fact put it on our radar a little more than before.
We love to hear feedback from our users and how their workflow would be improved with such a feature, so if you would like to share any more detail that would be awesome!
I just wanted to say Inlove this app and hope to do bigger business with this company.
And my comments here will be from pure ignorance because I am just starting with everything from online sales and using this app.(kinda)
So I agree with most on inventory it could be easier, wish you had populated lists for products. I wish, like on Walmart app I can scan the barcode and it reads on the screen everything I had bought (1 I'm way behind on receipts so that ability on Walmart has worked great because you cannot always read what was purchased) so it would be cool if there was some kind of integration with store receipts like that, instead of a picture that just reads vendor and total price.
There are also so many barcode readers that it would be cool if you could just scan barcode, have a inventory add/subtract, COG, sale price and vendor categories. Then scan again when sold. I know this is deep just would neat on maybe an upgrade cost.
Also I have been creating a bill for my receipts and inputting each item to be resold. Can that be created as an asset on bill for inventory??
@JoeDub Thanks for sending good vibes! We love to hear that you're enjoying Wave, it's what we live for
That's a really interesting suggestion. Having the ability to scan a barcode and then have all the receipt expenses populate in your Transactions page? It sure sounds convenient! We love convenience so we appreciate you taking the time to share this idea with us.
Very helpful.
Let's say I buy inventory A, and inventory B from my supplier with postage. How do I record the postage as an expense, and how do I mark up the inventory, without showing in the inventory account? I would like to have your opinion, thank you.
In my solo business perspective this is very important since when I'm filling the 'PROFIT AND LOSS ACCOUNT' in the income tax return, I have to state the 'Opening Stock', 'Stock Purchases', 'Closing Stock' and Expenses.
I am using this example. Let's say I have an invoice from a supplier:
___________qty unit price totals
Apples_____10 1 10
Bananas____15 2 30
Cherries____20 3 60
Postage 30
---
____________________130
So I need to create the asset accounts
Inventory - Apples
Inventory - Bananas
Inventory - Cherries
So now I need to split the payment transaction for Apples, Bananas and Cherries. Up to here it's ok.
I have two questions:
The Account Transaction Report is for the Apples, Bananas and Cherries, I would need the global closing stock for the 'Closing Stock' in the 'PROFIT AND LOSS ACCOUNT'.
Regarding the markup, if I sell the Apples at 12, the journal entry 'Inventory - Apples' be 10, so I have to
remember the buying price? In the 'PROFIT AND LOSS ACCOUNT', I think I can enter the yearly amount of the Cost of Goods Sold expense account?
@twanny796 To me, it does sound like you are trying to track inventory by units, which isn't something that's currently possible in Wave. We could implement something similar to this in the future, but for now, we don't have any immediate plans to add this anytime soon.
At the moment, I'm afraid not @Ronalds. This could be something that we implement in the future, but we don't have any immediate plans on adding this any time soon.
I vote for a simple inventory unit tracker as well! I really don't want to use excel especially because of the invoicing feature you have. It would be really great to know when creating the invoice it's reducing my inventory counts!
Good day all
May I add another angle to this discussion? I am starting a drone business ( www.trinitydrones.co.za ). I have also started by entering my transactions on EXCELL but would like to use something like WAVE. At this point I need to clarify that I am an engineer and have very little accounting experience, so please forgive if I say something "stupid" ??
I have an issue with entering some assets ( like equipment etc ) ... but lets leave that for now.
In terms of inventory, my challenge is the fact that I buy components , manufacture a drone and then sell the drone. I don't sell the components that I buy. So I need to , somehow reduce my stock with .... motors, and props and frame ( lets just stick to that as an example ). But my invoice will read "T-MK-II Drone". So, somehow, I need to link "T-MK-II drone" to .....
4 motors, 4 props and a frame and get that removed from my stock !!!!
I am manufacturing a product that has a few parts. How do I account for the purchase of the raw parts in my inventory since I am not buying a finished product?
@John_Longland1 I'm afraid this isn't something that's currently possible in Wave at this moment (associating your components toward an invoice) as well as tracking the specific inventory for the components you have in Wave. Could you give me a little more context of what your business does and how you'd like to see it integrated in Wave? It's possible we would introduce this via a 3rd party app, but just wondering what your ideal outcome would be.
@HuggablePet. You would still want to create an expense transaction for these particular parts, and categorize them accordingly. Technically you could create an asset account and label it 'parts' and then create the expense transaction/associate it with that particular asset account.
The above doesn't seems to work for me as the purchase of items has an accompanying invoice from manufacturer with value of $X. The invoice is uploaded as a bill.
Bill payment made by bank transfer, Hence my bank statement would have an entry of withdrawal $X. I have to categorize this entry as category of "bill payment for that invoice". By doing that, I can't categorize as an inventory asset per your workaround.
If i used your workaround, then the bill will remain unpaid. And if I record a manual payment on that bill, it'll add another entry which results in double recording.
How do I properly handle this? Or did I misunderstand your workaround?
@Robreis said:
I am an accountant. I just finished trying to convince my client to use Wave to record their sales and receivables.
I use Accountedge to do the rest of their accounting. The client needs to track units of inventory. I will recommend that they use Excel to do it for now but..............
Wave team, nothing could possibly be more important that adding a simple inventory tracking feature.
This is exactly what I need to do also for my custom jewelry. Supply costs broken down to units, COGS, etc. If I have to do it in a spreadsheet, is there an API that can help to integrate the information?
@Cjlim_bg. Selecting an account and categorization is different in Wave. You have the option to select which asset account the expense transaction would be associated with, and can also categorize the transaction as a payment sent for bill in Wave. A screenshot example of this where the Canon AE-1 account is my fixed asset account (created in the Chart of Accounts under Property, Plant & Equipment). You can also see that I was still able to associate the specific bill with this transaction.
@mjz I'm afraid that our API still doesn't have the functionality of uploading specific data for inventory tracking just yet. For more information on this, please take a look at the link here: https://developer.waveapps.com/hc/en-us
@JamieD
What you say makes sense but it doesn't allow me to split as split is only at Category level.
My case here is that there's a single bill but with 2 different types of goods/assets.
What is described @ https://support.waveapps.com/hc/en-us/articles/208621536 works for me, but not applicable as I need "Category" to be mark with bill payment and "Account" can't be split.
Hi. What method of inventory costing does Wave use? On my spreadsheets before Wave, I used to use the weighted average method. Is this something possible with Wave? If yes, how do I do it here?
Ahh thanks for confirming for me @Cjlim_bg. I'm afraid it's not possible to split transactions between two separate asset accounts, so it would technically need to be two separate transactions if you are wanting to track this in Wave.
Hi @hjaffer, that is a great question! I have merged your post with our current inventory tracking page so you can take a look at other questions posted by community members around this topic. Wave does not have a built out inventory tracking feature (so you would not be able to use the weighted average method). Currently, the inventory tracking process calculates the monetary value of your units. To do this you would add an asset and cost of goods sold account to record units in. We also have a Help Center article on inventory tracking if you want to look at the process in more detail.
Comments
Hi @Neilcanada . Thanks for pointing this out, I'll put it on the team's radar. Although it may cause a bit more confusion with the difference in examples, the steps in this article are still correct. You can replace the wording with Fish Food or Muskoka Chairs and the information will still set you up properly for inventory entry & tracking.
Hey @Neilcanada, that is a great question. You would always be making the adjustment/journal transaction relative to your original purchase price. So lets just say you buy 10 chairs for $100, and then you sell a single chair for $20, you would add an adjustment/journal transaction where you Credit the inventory account for $10, and Debit the COGS account $10.
In my case, the CoS is subcontractor time.
So I have invoiced the client, the money has come into my account from her, and I have paid the contractor. I make some money through these transactions. All these transactions appear through bank import.
At the stage outlined at the top of my message, I am unclear what to do next.
Thanks!
Thanks for pointing that out @KeyboardSmash! We're going to get that fixed. In the mean time, essentially all you need to do is head over to Accounting > Transactions, and locate the income transaction which should be used to mark the invoice as paid.
Once you have located it, select it to re-categorize it. You're going to want to choose the category "Payment made for an Invoice in Wave", followed by the exact invoice you're applying the invoice to, and you should be good to go!
Is there any reason why Wave cannot calculate the unit value of inventory? Since the unit price for my purchases fluctuates, it would be really difficult for me to calculate the COGS whenever I make a sale.
I am an accountant. I just finished trying to convince my client to use Wave to record their sales and receivables.
I use Accountedge to do the rest of their accounting. The client needs to track units of inventory. I will recommend that they use Excel to do it for now but..............
Wave team, nothing could possibly be more important that adding a simple inventory tracking feature.
@aidanlee @Robreis When it comes to adding new features to Wave, a lot of different factors go into it (product development, prioritization, understanding customer needs, and building the actual feature). Simply speaking, I don't have an exact reason as to why this isn't a feature that's currently available in Wave, but this thread has created some eye opening requests from our client base that do, in fact put it on our radar a little more than before.
We love to hear feedback from our users and how their workflow would be improved with such a feature, so if you would like to share any more detail that would be awesome!
AGREE!!! I'm really looking to swap to another platform simply because of this.
And my comments here will be from pure ignorance because I am just starting with everything from online sales and using this app.(kinda)
So I agree with most on inventory it could be easier, wish you had populated lists for products. I wish, like on Walmart app I can scan the barcode and it reads on the screen everything I had bought (1 I'm way behind on receipts so that ability on Walmart has worked great because you cannot always read what was purchased) so it would be cool if there was some kind of integration with store receipts like that, instead of a picture that just reads vendor and total price.
There are also so many barcode readers that it would be cool if you could just scan barcode, have a inventory add/subtract, COG, sale price and vendor categories. Then scan again when sold. I know this is deep just would neat on maybe an upgrade cost.
Also I have been creating a bill for my receipts and inputting each item to be resold. Can that be created as an asset on bill for inventory??
@JoeDub Thanks for sending good vibes! We love to hear that you're enjoying Wave, it's what we live for
That's a really interesting suggestion. Having the ability to scan a barcode and then have all the receipt expenses populate in your Transactions page? It sure sounds convenient! We love convenience so we appreciate you taking the time to share this idea with us.
Very helpful.
Let's say I buy inventory A, and inventory B from my supplier with postage. How do I record the postage as an expense, and how do I mark up the inventory, without showing in the inventory account? I would like to have your opinion, thank you.
@twanny796 How are you thinking of going about this? I'm wondering what your thoughts are before we weigh in!
In my solo business perspective this is very important since when I'm filling the 'PROFIT AND LOSS ACCOUNT' in the income tax return, I have to state the 'Opening Stock', 'Stock Purchases', 'Closing Stock' and Expenses.
I am using this example. Let's say I have an invoice from a supplier:
___________qty unit price totals
---
____________________130
So I need to create the asset accounts
So now I need to split the payment transaction for Apples, Bananas and Cherries. Up to here it's ok.
I have two questions:
The Account Transaction Report is for the Apples, Bananas and Cherries, I would need the global closing stock for the 'Closing Stock' in the 'PROFIT AND LOSS ACCOUNT'.
Regarding the markup, if I sell the Apples at 12, the journal entry 'Inventory - Apples' be 10, so I have to
remember the buying price? In the 'PROFIT AND LOSS ACCOUNT', I think I can enter the yearly amount of the Cost of Goods Sold expense account?
Thank you for your help.
@twanny796 To me, it does sound like you are trying to track inventory by units, which isn't something that's currently possible in Wave. We could implement something similar to this in the future, but for now, we don't have any immediate plans to add this anytime soon.
What?? There's no inventory tracking feature??
At the moment, I'm afraid not @Ronalds. This could be something that we implement in the future, but we don't have any immediate plans on adding this any time soon.
edit: never mind
I vote for a simple inventory unit tracker as well! I really don't want to use excel especially because of the invoicing feature you have. It would be really great to know when creating the invoice it's reducing my inventory counts!
Good day all
May I add another angle to this discussion? I am starting a drone business ( www.trinitydrones.co.za ). I have also started by entering my transactions on EXCELL but would like to use something like WAVE. At this point I need to clarify that I am an engineer and have very little accounting experience, so please forgive if I say something "stupid" ??
I have an issue with entering some assets ( like equipment etc ) ... but lets leave that for now.
In terms of inventory, my challenge is the fact that I buy components , manufacture a drone and then sell the drone. I don't sell the components that I buy. So I need to , somehow reduce my stock with .... motors, and props and frame ( lets just stick to that as an example ). But my invoice will read "T-MK-II Drone". So, somehow, I need to link "T-MK-II drone" to .....
4 motors, 4 props and a frame and get that removed from my stock !!!!
I am manufacturing a product that has a few parts. How do I account for the purchase of the raw parts in my inventory since I am not buying a finished product?
@John_Longland1 I'm afraid this isn't something that's currently possible in Wave at this moment (associating your components toward an invoice) as well as tracking the specific inventory for the components you have in Wave. Could you give me a little more context of what your business does and how you'd like to see it integrated in Wave? It's possible we would introduce this via a 3rd party app, but just wondering what your ideal outcome would be.
@HuggablePet. You would still want to create an expense transaction for these particular parts, and categorize them accordingly. Technically you could create an asset account and label it 'parts' and then create the expense transaction/associate it with that particular asset account.
Bill payment made by bank transfer, Hence my bank statement would have an entry of withdrawal $X. I have to categorize this entry as category of "bill payment for that invoice". By doing that, I can't categorize as an inventory asset per your workaround.
If i used your workaround, then the bill will remain unpaid. And if I record a manual payment on that bill, it'll add another entry which results in double recording.
How do I properly handle this? Or did I misunderstand your workaround?
any updates to my question?
This is exactly what I need to do also for my custom jewelry. Supply costs broken down to units, COGS, etc. If I have to do it in a spreadsheet, is there an API that can help to integrate the information?
@Cjlim_bg. Selecting an account and categorization is different in Wave. You have the option to select which asset account the expense transaction would be associated with, and can also categorize the transaction as a payment sent for bill in Wave. A screenshot example of this where the Canon AE-1 account is my fixed asset account (created in the Chart of Accounts under Property, Plant & Equipment). You can also see that I was still able to associate the specific bill with this transaction.
@mjz I'm afraid that our API still doesn't have the functionality of uploading specific data for inventory tracking just yet. For more information on this, please take a look at the link here: https://developer.waveapps.com/hc/en-us
@JamieD
What you say makes sense but it doesn't allow me to split as split is only at Category level.
My case here is that there's a single bill but with 2 different types of goods/assets.
What is described @ https://support.waveapps.com/hc/en-us/articles/208621536 works for me, but not applicable as I need "Category" to be mark with bill payment and "Account" can't be split.
Hi. What method of inventory costing does Wave use? On my spreadsheets before Wave, I used to use the weighted average method. Is this something possible with Wave? If yes, how do I do it here?
Thanks
Ahh thanks for confirming for me @Cjlim_bg. I'm afraid it's not possible to split transactions between two separate asset accounts, so it would technically need to be two separate transactions if you are wanting to track this in Wave.
Hi @hjaffer, that is a great question! I have merged your post with our current inventory tracking page so you can take a look at other questions posted by community members around this topic. Wave does not have a built out inventory tracking feature (so you would not be able to use the weighted average method). Currently, the inventory tracking process calculates the monetary value of your units. To do this you would add an asset and cost of goods sold account to record units in. We also have a Help Center article on inventory tracking if you want to look at the process in more detail.