@JamieD, I tried your screengrab of "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.", however, I'm unable to save the transaction. it keeps throwing error of "There was an error saving" when I select Account as my inventory account. I can only save the transaction if I choose my company bank account.
Account "Fire Extinguisher" is an Asset/Inventory type of account.
In the end, I have to still have to set the above transaction against my bank account.
Within the inventory purchase bill, I have to itemize the items with Expense Category set to Asset/Inventory account of "Fire Extinguisher".
Every time, there's a purchase, I'll then create a journal entry of the following with debit against COGS and credit against Asset/Inventory account of "Fire Extinguisher":
it seems to work so far. but the frustrating part is the above process isn't exactly documented in the guide. Perhaps straight forward for users with accounting background, but definitely not to me.
regardless, your suggestion of having a transaction set against Asset/Inventory account of "Fire Extinguisher" and categorize against the inventory purchase bill option doesn't seems to work with the error shown above.
Hey @Cjlim_bg . Sorry for the late reply. I've actually reached out to our Product team to have a better understanding of the expected behavior of these accounts. Jamie suggested above that you use the "Property Plant and Equipment" account instead of the Inventory account (as like you said, it doesn't allow you to save with it) and I just want to understand if this would be a valid workaround for you.
Thanks for your patience, I'll get back to you as soon as I have a better answer.
some of products i sale Consists of some products i buy. So, What i need to reduce the amount of products i already bought there is any integrated app does this?
@AlexL
the suggestion of "Property Plant and Equipment" is not intuitive to me. I'll continue to use my own workaround that I'd shared earlier. thanks.
I have merged your conversation into the Simple Inventory Tracking help center discussion. Unfortunately it sounds like you're looking for a product inventory tracker which at this point Wave does not do. My apologies for the bad news. But check out this thread for more discussions of what Wave is capable of doing when it comes to your inventory!
Just checking in if there are any plans on creating an inventory tracking feature. Using a spreadsheet is archaic and if not, we’d have to find another accounting solution.
How do I record inventory from China that I bought but then got a refund on one or two pieces because they were defected? I understand what to do when buying and how to record. I also understand what to do when recording sales of inventory. In my case, one of the owners, lets say owner Ned, bought the inventory as an owners investment. Two of the 10 widgets from China for resale was defective. Owner Ned got a refund on his credit card. How is this refund income AND inventory recorded? Remember, this is a partnership with two partners if it matters.
@Bicameral At the moment, Wave is prioritizing building out our Accounting and invoicing platforms in Wave. Inventory management is definitely an operating action for many businesses, however it falls outside of the scope of accounting where our team spends a lot of it's time. We definitely hear that this is something that many business owners are looking for a platform to support, however, at this point, this would require a lot of resources to build out a brand now product offering, one that is not within our wheelhouse at the moment. Maybe in the future we will explore this future, however currently it is not on our Product Roadmap and I highly doubt that there will be much movement or consideration until early next year.
@NedForestor When you are recording a transaction as an owner's investment, this typically signifies something being purchased on a personal card of the owner for business use. If the refund was done on the personal credit card, the main bookkeeping would take place in their personal bookkeeping. In terms of the business' books, the difference can likely be taken out of the books by creating an "owners draw" transaction that reflects the total of the refund and the monetary gain that would come from the business in doing this. This would could as a reversing transaction and should adjust the balance that was initially marked fully as an owner's investment to the appropriate amount after the refund. Hope this helps!
Tried reading through The previous comments but still struggling. What i need is the purchase of stock to show. So I add a bill. I then add this as a asset separate while unsold.
When I put in weekly takings I add in the amount as an income. When I got to add the journal transaction I’m under the impression I need to take off the stock cost from the inventory assets and then the income which is higher. But saying unbalanced. If that’s not correct what do I need to be doing.
My end goal is any unsold stock is sat in the current assets section for end of year accounts.
Any help is appreciated! How would i enter inventory previously purchased before Jan 1,2020. In previous system is was know as "Beginning Inventory" I have an Inventory section- but to add to it i need to make a transaction and then it still doesn't show up in my products/services.
Hey @Daniel148 . I think you may have missed the Inventory article itself. Please follow along with the steps in the article attached below which should help you track the monetary value of your inventory.
Hi everyone, I am new in Wave. Question. I entering the idems in the inventory, some of the idem a double, same cost or color. do I have to enter it twice?
Thank you
I'm trying to understand how the COGS-Muskoka Chair shows up as an Asset on the balance sheet. We created the account as an expense in step 3. Do we also create COGS is the Asset accounts? In my own real scenario, I have a bag of dog food that I sell. I create an inventory account for the bags purchased at wholesale. I create a COGS expense account as described in this article. I create a journal transaction after the sale is complete. The balance sheet only shows the Inventory account, no COGS account. What am I doing wrong?
I've merged your conversation into the existing Inventory Tracking Discussion thread. Have a look through here for more community discussions on inventory tracking and how to do it in Wave. Regarding your beginning transaction, as long as you've created your accounts correctly in your chart of accounts you should be able to head to the transactions page and enter in your transaction there!
When accounting for COGS you'd need to create both the expense account, as well as the asset (inventory) account. In your Chart of Accounts (CoA) be sure you create an asset inventory account.
This allows you to document the purchase as seen in the first screen in the article regarding the purchase of the Muskoka chair which is categorized to that asset inventory account.
Then, when you make a sale to your income account on those goods, you'll need to create a coinciding journal transaction to decrease your asset inventory account and account for Cost of Goods Sold.
Filter the inventory asset account in your Account Transactions Report for this will be the most useful since you will be able to see all purchases and sales.
I've merged your question into the help center discussion around entering inventory in Wave. Have a read through these discussions and you should be able to get an answer here!
Hi, is there a way to categorize uploaded RECEIPTS of inventory purchases as an ASSET (inventory)?
Currently I've been uploading receipts via mobile and PC. Then under Menu > Purchases > Receipts I go in to review the processed receipts... but the only options in the Category drop down menu are for the various Expense accounts (like COGS, Repairs, Office Supplies, etc). Right now I've been filing it as an uncategorized expense, posting it to my transactions, merging it with the matching synced bank/credit card transaction, then recategorizing it as an increase in (Asset account) inventory. If there's a faster way to do this it'd be immensely helpful. :)
From what I understand with Asset and Expense accounts, inventory purchased that hasn't been sold would be represented as an asset. Then once the inventory is sold I would recognize this as an expense under COGs. (I'm trying to maintain accrural based accounting records). If I'm misunderstanding something please let me know!
hello, really like the app. thank for the hark work. want to ask about tracking item. let say i bought 10 banana for $100. i sold 4 banana for $100. how to track the banana thats left? 10 - 4 = 6. thanks in advance.
What exactly do you record in journal transaction?
So you buy a chair for $100, that makes your assets worth $100
Then you sell that chair for $20; why your assets are -$20?
Hi @StillLearning! You are correct in viewing that only expense accounts can be assigned for receipt uploads, but I can see how in this situation it would be good to have the option to add an asset account so I can pass this feedback along! The steps you are taking are correct when uploading the receipt to then have it assigned to an asset account but I do see that it is a lot of manual work. It sounds like your accrual accounting is correct! When you sell the inventory you would want to categorize the sales transaction to an income account and then follow the steps to record a journal transaction to decrease the asset inventory account and account for Cost of Goods Sold.
Hi @Lumivera! We're so glad to hear you like the app! Currently in Wave we only have the ability to track the 'monetary' value of inventory, not the actual units. If you wanted to track the physical number of your inventory you would have to use another software I'm afraid. You may be able to find one that integrates with Wave through Zapier though, so I recommend taking a look at the Zapier integration by visiting this page.
Hi @BlindKitten! In the journal transaction you will want to record the amount of the inventory sold. In the Wave example $100 worth of chairs are purchased (not to be confused with one $100 chair), then a sale is recorded for $20 worth of chairs. The purpose of the journal transaction is to decrease the asset inventory account you created and account for Cost of Goods Sold after the sale.
I purchased inventory from my manufacturer with a credit card so I added an expense for this purchase under the inventory asset category as instructed above. Then I paid my credit card purchase from my business checking account. How do I record this payment? Do I have to create an invoice for the purchase and make a payment on the invoice? More than confused right now.
Thank you for your help.
Hi @avaloncompanyllc! In this case you can still follow the steps in the guide. Categorize the initial 'purchase' transaction from your credit card to the asset account created for the inventory. When you categorize a payment to your credit card you can follow the steps in this Wave guide to do so: Categorizing a credit card payment.
In the example above, your journal entries are showing up on the balance sheet as COGS - Muskoka Chair and Inventory - Muskoka Chair. For some reason my balance sheet is only showing my Inventory entry as my entire inventory amount minus the one journal entry amount and my COGS entry is not showing on it at all. Is this right? I didn't think COGs is an asset or a liablity.
Hi,
I am seeing 100% profit in profit & loss account. Where to enter purchase price? I want to know why products & services are given under sales as well as purchases heads, instead keep them separate with sales and purchase price entries?
This article is missing out the details of the most important step - can you add a screenshot of your journal transaction which ties the inventory asset to the COGS
Comments
@JamieD, I tried your screengrab of "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.", however, I'm unable to save the transaction. it keeps throwing error of "There was an error saving" when I select Account as my inventory account. I can only save the transaction if I choose my company bank account.
Hey @Cjlim_bg . Can you take a screenshot of the transaction window and send it over so I can take a further look? Let me know.
Account "Fire Extinguisher" is an Asset/Inventory type of account.
In the end, I have to still have to set the above transaction against my bank account.
Within the inventory purchase bill, I have to itemize the items with Expense Category set to Asset/Inventory account of "Fire Extinguisher".
Every time, there's a purchase, I'll then create a journal entry of the following with debit against COGS and credit against Asset/Inventory account of "Fire Extinguisher":
it seems to work so far. but the frustrating part is the above process isn't exactly documented in the guide. Perhaps straight forward for users with accounting background, but definitely not to me.
regardless, your suggestion of having a transaction set against Asset/Inventory account of "Fire Extinguisher" and categorize against the inventory purchase bill option doesn't seems to work with the error shown above.
Hey @Cjlim_bg . Sorry for the late reply. I've actually reached out to our Product team to have a better understanding of the expected behavior of these accounts. Jamie suggested above that you use the "Property Plant and Equipment" account instead of the Inventory account (as like you said, it doesn't allow you to save with it) and I just want to understand if this would be a valid workaround for you.
Thanks for your patience, I'll get back to you as soon as I have a better answer.
some of products i sale Consists of some products i buy. So, What i need to reduce the amount of products i already bought there is any integrated app does this?
@AlexL
the suggestion of "Property Plant and Equipment" is not intuitive to me. I'll continue to use my own workaround that I'd shared earlier. thanks.
Hey there @AhmedHalim
I have merged your conversation into the Simple Inventory Tracking help center discussion. Unfortunately it sounds like you're looking for a product inventory tracker which at this point Wave does not do. My apologies for the bad news. But check out this thread for more discussions of what Wave is capable of doing when it comes to your inventory!
Hey @CaptainPoolsDOTcom . We have no plans to implement an inventory tracking system in the near future.
Agree @CaptainPoolsDOTcom. @AlexL what are the features that are being prioritized to be built vs Inventory tracking?
How do I record inventory from China that I bought but then got a refund on one or two pieces because they were defected? I understand what to do when buying and how to record. I also understand what to do when recording sales of inventory. In my case, one of the owners, lets say owner Ned, bought the inventory as an owners investment. Two of the 10 widgets from China for resale was defective. Owner Ned got a refund on his credit card. How is this refund income AND inventory recorded? Remember, this is a partnership with two partners if it matters.
@Bicameral At the moment, Wave is prioritizing building out our Accounting and invoicing platforms in Wave. Inventory management is definitely an operating action for many businesses, however it falls outside of the scope of accounting where our team spends a lot of it's time. We definitely hear that this is something that many business owners are looking for a platform to support, however, at this point, this would require a lot of resources to build out a brand now product offering, one that is not within our wheelhouse at the moment. Maybe in the future we will explore this future, however currently it is not on our Product Roadmap and I highly doubt that there will be much movement or consideration until early next year.
@NedForestor When you are recording a transaction as an owner's investment, this typically signifies something being purchased on a personal card of the owner for business use. If the refund was done on the personal credit card, the main bookkeeping would take place in their personal bookkeeping. In terms of the business' books, the difference can likely be taken out of the books by creating an "owners draw" transaction that reflects the total of the refund and the monetary gain that would come from the business in doing this. This would could as a reversing transaction and should adjust the balance that was initially marked fully as an owner's investment to the appropriate amount after the refund. Hope this helps!
HOW TO ENTER PRODUCT OPENING BALANCES
Hi @MOHA . If you're using a different account for every product to track it, you can add a starting balance using the Help Center article linked here.
Tried reading through The previous comments but still struggling. What i need is the purchase of stock to show. So I add a bill. I then add this as a asset separate while unsold.
When I put in weekly takings I add in the amount as an income. When I got to add the journal transaction I’m under the impression I need to take off the stock cost from the inventory assets and then the income which is higher. But saying unbalanced. If that’s not correct what do I need to be doing.
My end goal is any unsold stock is sat in the current assets section for end of year accounts.
Any help is appreciated! How would i enter inventory previously purchased before Jan 1,2020. In previous system is was know as "Beginning Inventory" I have an Inventory section- but to add to it i need to make a transaction and then it still doesn't show up in my products/services.
Is there a better/correct way to do that?
Hey @Daniel148 . I think you may have missed the Inventory article itself. Please follow along with the steps in the article attached below which should help you track the monetary value of your inventory.
Simple inventory entry and tracking in Wave
Hi everyone, I am new in Wave. Question. I entering the idems in the inventory, some of the idem a double, same cost or color. do I have to enter it twice?
Thank you
I'm trying to understand how the COGS-Muskoka Chair shows up as an Asset on the balance sheet. We created the account as an expense in step 3. Do we also create COGS is the Asset accounts? In my own real scenario, I have a bag of dog food that I sell. I create an inventory account for the bags purchased at wholesale. I create a COGS expense account as described in this article. I create a journal transaction after the sale is complete. The balance sheet only shows the Inventory account, no COGS account. What am I doing wrong?
Hey there @Tiff82
I've merged your conversation into the existing Inventory Tracking Discussion thread. Have a look through here for more community discussions on inventory tracking and how to do it in Wave. Regarding your beginning transaction, as long as you've created your accounts correctly in your chart of accounts you should be able to head to the transactions page and enter in your transaction there!
Hi @Kurt_CCC
When accounting for COGS you'd need to create both the expense account, as well as the asset (inventory) account. In your Chart of Accounts (CoA) be sure you create an asset inventory account.
This allows you to document the purchase as seen in the first screen in the article regarding the purchase of the Muskoka chair which is categorized to that asset inventory account.
Then, when you make a sale to your income account on those goods, you'll need to create a coinciding journal transaction to decrease your asset inventory account and account for Cost of Goods Sold.
Filter the inventory asset account in your Account Transactions Report for this will be the most useful since you will be able to see all purchases and sales.
Hope this makes sense!
Hey there @HeritageSO
I've merged your question into the help center discussion around entering inventory in Wave. Have a read through these discussions and you should be able to get an answer here!
Currently I've been uploading receipts via mobile and PC. Then under Menu > Purchases > Receipts I go in to review the processed receipts... but the only options in the Category drop down menu are for the various Expense accounts (like COGS, Repairs, Office Supplies, etc). Right now I've been filing it as an uncategorized expense, posting it to my transactions, merging it with the matching synced bank/credit card transaction, then recategorizing it as an increase in (Asset account) inventory. If there's a faster way to do this it'd be immensely helpful. :)
From what I understand with Asset and Expense accounts, inventory purchased that hasn't been sold would be represented as an asset. Then once the inventory is sold I would recognize this as an expense under COGs. (I'm trying to maintain accrural based accounting records). If I'm misunderstanding something please let me know!
hello, really like the app. thank for the hark work. want to ask about tracking item. let say i bought 10 banana for $100. i sold 4 banana for $100. how to track the banana thats left? 10 - 4 = 6. thanks in advance.
What exactly do you record in journal transaction?
So you buy a chair for $100, that makes your assets worth $100
Then you sell that chair for $20; why your assets are -$20?
Hi @StillLearning! You are correct in viewing that only expense accounts can be assigned for receipt uploads, but I can see how in this situation it would be good to have the option to add an asset account so I can pass this feedback along! The steps you are taking are correct when uploading the receipt to then have it assigned to an asset account but I do see that it is a lot of manual work. It sounds like your accrual accounting is correct! When you sell the inventory you would want to categorize the sales transaction to an income account and then follow the steps to record a journal transaction to decrease the asset inventory account and account for Cost of Goods Sold.
Hi @Lumivera! We're so glad to hear you like the app! Currently in Wave we only have the ability to track the 'monetary' value of inventory, not the actual units. If you wanted to track the physical number of your inventory you would have to use another software I'm afraid. You may be able to find one that integrates with Wave through Zapier though, so I recommend taking a look at the Zapier integration by visiting this page.
Hi @BlindKitten! In the journal transaction you will want to record the amount of the inventory sold. In the Wave example $100 worth of chairs are purchased (not to be confused with one $100 chair), then a sale is recorded for $20 worth of chairs. The purpose of the journal transaction is to decrease the asset inventory account you created and account for Cost of Goods Sold after the sale.
I purchased inventory from my manufacturer with a credit card so I added an expense for this purchase under the inventory asset category as instructed above. Then I paid my credit card purchase from my business checking account. How do I record this payment? Do I have to create an invoice for the purchase and make a payment on the invoice? More than confused right now.
Thank you for your help.
Hi @avaloncompanyllc! In this case you can still follow the steps in the guide. Categorize the initial 'purchase' transaction from your credit card to the asset account created for the inventory. When you categorize a payment to your credit card you can follow the steps in this Wave guide to do so: Categorizing a credit card payment.
In the example above, your journal entries are showing up on the balance sheet as COGS - Muskoka Chair and Inventory - Muskoka Chair. For some reason my balance sheet is only showing my Inventory entry as my entire inventory amount minus the one journal entry amount and my COGS entry is not showing on it at all. Is this right? I didn't think COGs is an asset or a liablity.
Hi,
I am seeing 100% profit in profit & loss account. Where to enter purchase price? I want to know why products & services are given under sales as well as purchases heads, instead keep them separate with sales and purchase price entries?
This article is missing out the details of the most important step - can you add a screenshot of your journal transaction which ties the inventory asset to the COGS