How to deal with stock you've in a financial year but will only arrive mid next financial year

Accounting
1

Hi there,

I’m working on submitting the accounts for the first financial year of my company.
I’ve read in several posts which, because I’m starting from scratch I won’t have an “Opening Stock”, and for that I’ve marked all stock purchases as “General Expenses” (if this is wrong and they should be “Opening stock” let me know please).

My question is regarding the allocation of stock I got in the last day of my financial year BUT will only arrive in the middle of my second year of business.
Does that stock cost is considered for “Closing stock” of my financial year because it has been paid? Or should that cost be excluded and only considered once I have it?

Thank you!
This software is a life saviour and I’m learning loads!

2

Hi @soraia,

This question may be better aimed at your accountant to make sure that it is all correct, as I am not an accountant I wouldn’t like to give you any wrong advice. Once you have had confirmation on what is the correct way to report it we can then advise on how you can enter this in QuickFile

1 Like
3

Hi Soraia, I was a Management Accountant for many years in manufacturing industry.
Proper Stock Control ensures trackimg of your stock (theft etc) and also that you correctly record your Trading Profits to HMRC.
Strictly speaking, any stock you buy for resale should be “put into stock” as an ASSET - Chart 1001, then when SOLD an ajustment should be made to transfer the COST of the GOODS SOLD to the Profit & Loss Account “General Purchases” Chart 5000, though I would prefer it to be called “Cost of Sales”.
By running a Balance Sheet you would see the remaing stock value in 1001 and this should balance to your own Stock Control System.
We use a FREE Stock Control System and reconcile the Stock Figure from there to Quickfile every month.
Looking at the Chart of Accounts, there is an Opening Stock and Closing Stock Chart, Quickfile would have to explain how these work.
Whay a pity Quickfile doesn’t have an Integrated Stock Control System, it would do all this work for you in the background.
Regards

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4

The question was, what do they do with regards to recording stock that hasn’t been sent yet, not how to record stock.

The opening and closing stock nominals in quickfile are used at year end to record stock carried over and stock left during the financial year.

What you need to ask your accountant is, do you record stock as such, if no stock has been supplied, my guess would be no.

1 Like
5

Thanks Paul, I’ll check but I’d guess no as well.