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Where do i update stock i purchase for the company to sell for profit in the site
SNUGFOOD
Member Posts: 4
Hi all ,
I am pretty new and unfamiliar with regards to the wave sight. Just need some help here. Updating my income and expense. Where would i place stock i purchase with the intention of selling to consumers for profit. What category would that be in
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I am assuming owner investment and drawings BUT would that be considered as a withdrawal or deposit. Just wondering how it would affect the end result when a generate the accounts
basically i guessed i need to know where do i update cost of goods
@SNUGFOOD,
Based on the terminology you are using, I'm assuming you are not in the US. But you should account for stock as inventory. Inventory is a short term asset. Wave cannot track inventory automatically, meaning it will not debit cost of goods sold (like purchases) and credit inventory when you sell something. This has to be manually done through journal entries. What I recommend to my clients in the US is to just expense all items for resale under purchases. At the end of the fiscal year, you would debit inventory and credit purchases to account for any items the business held in stock for sale. In the second fiscal year you would continue to expense all purchases for resale. At the end of the second fiscal year you would debit or credit inventory and purchases to adjust the balance of inventory.