Hi,
(2nd edit - I think i am in much more of a mess with this than I originally thought. I need to get back to this when I have more time and work this out so I’ll leave this on hold for now - apologies)
I started using QF at the beginning of the year.
I started recording spares that I use in the course of work as “stock - code 1001”.
However it turned out (thanks to help on this forum) that that was the wrong thing to do, and I was advised to use code “stock for resale - 5011”, and make a journal to move across the balance to correct this.
I assumed all was well, but I ran a P and L report just now and noticed that my gross profit is now MORE than my turnover (!). This is because the cost of sales sees my “stock for resale” as a positive (green) not a negative (red).
Forgive me if ive done something stupid here…I am an engineer and used to a 20 yr old accounts system (Quicken) that I was used to and just did its thing. The learning process in QF is very much ongoing, and not always intuitive to someone not used to accounting language.
Id appreciate if someone could explain where ive gone wrong and how best to correct this.
Many thanks
Gary