Hi
I’m new to an accounting software.
As a furniture restorer and upholsterer, I buy various materials and often
they are too much to use up in one financial year.
So far, in an excel sheet I calculated like this for various materials; for example last financial year
A. Stock on hand and work in progress at start of the period (06/04/2021)
B. Goods and raw materials I bought this period (06/04/2021 to 05/04/2022)
C. Stock on hand and work in progress at the end of this period (05/04/2022)
A+B-C=D which I claim as ‘Cost of sales’ for the year 2021-2022.
I’m not sure how to do this with QF.
I read this thread;
Continuing the discussion from Stock:
But I don’t sell materials and the amount I use for each job is often not clear. Like
1% of a bottle of French Polish?.. therefore, I check rough figure at the end of year when I do
self assessment and expressed as how much% left.
I hope that I have been doing this right and if so, could you tell me how I can do the same using
Quickfile? Thank you.
Exactly the same principle applies in your case as in the linked post about stock takes - you will still need to calculate the value of the materials and work in progress in your excel sheet at the end of each year exactly as you have been doing so far. Once you have that value then you would make a journal at year end moving the previous year’s year end value from credit stock to debit opening stock, and this year’s value credit closing stock and debit stock. Anything you buy during the year (“B” in your previous calculation) you would have recorded as general purchases when you bought it, so your year end P&L will show the same start+purchased-end calculation you’re used to.
Note that for this to work out, at the point where you first started using QuickFile you’ll need to have imported the previous year’s closing “C” value under “stock” in your opening trial balance.