Costs of sales and inventory updating

[nigelatbm]

I’d welcome some simple guidance on how to proceed.

I sell item-x which I buy in bulk. When I buy I want to add the cost to my inventory asset nominal. When I sell one or more item-x’s I want to add the cost to the appropriate cost-of-sales nominal for p&l purposes and I want to subtract the cost from my inventory asset nominal.

Do I simply raise the appropriate journal transfers, or can I define rules somewhere to automate this procedure?

[QFMathew]

Hi @nigelatbm

Throughout the year you would generally record your stock purchases as “General Purchases”. It’s only at year end you would need to worry about recording stock value.

We do have a guide on stock journals here: Journalling opening and closing stock totals, which may help.