About to go through our first FY end using QF. I have checked the journals approach through QF Help on how to incorporating opening and closing stock valuations.
I have been running with a customised accounts for purchased stock sales and purchases goods just to remove doubt when looking at P&L’s. On checking the “Help” I note the example(s) refer to journals to and from a standard account “Stock”. In order for the Cost of Sales on the P&L to work correctly should I be journalling the closing stock from by customised account to the standard “Stock” account and then into the “Closing stock”.
Thanks
Sorry for the typos in my original. I probably should have left someone to tell me what to do rather than trying to second guess the approach.
Assumed you recorded all purchases under purchases expense and done stock take at the year-end date, you would need a journal;
Dr Stock (balance sheet)
Cr Closing stock (P&L)
My explanation might not have been clear enough. A scenario is that I might want to categorise goods purchased and their sales by different criteria. Businesses might employ tools such as purchase and sales analysis software to achieve this separation by categories rather the nominal ledger accounts (software).
We are not that big but it helps to do this categorisation.
In QF the standard “Stock” account (1001) (in the assets group) is the one that seems to be used in all the examples including the one above. If I have customised sales and purchases QF accounts how do I get to the end point of Closing Balance journal covering all categories?
Regards,
You could certainly create a parallel set of nominal codes for opening/closing stock of each type for your year end P&L. And you could go further and separate the Stock code in the same way if you want to see the year end breakdown on your balance sheet too, but that’s probably not really necessary as you have the breakdown by looking at the previous year’s P&L.
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