Profit and Loss - Stock

[Blackwood]

Hello

I haven’t been using any other accounting software apart from a spreadsheet and started from fresh with quickfile…

So I followed this post about adding stock from the previous year.

Year End Stock

Hi @mandyandy Basically you have 2 journals - one dated on year end for closing stock, one dated for year start for opening stock. These are not created automatically. Some smaller businesses don’t bother with these, but I’d advise you to speak to your accountant if you’re unsure (I’m not one). So, in my example I have a business with year ending 31st March 2016. I’ve purchased £24,610.00 worth of stock in that year, and sold £22,040.00 (including my mark up). I’ve valued my stock as of 31st M…

Which I think I have done correctly…but doing it this was if I check my chart of accounts for my new year entered in quickfile my opening stock shows in the red column ?

My other question being, on quickfile I have tagged all physical item stock as “General Purchase” and all sold products as “General Sale” , so when I use the journal to bring stock in from the previous year its shown under purchases do I need to change this into general purchases…? Basically how do I get my previous years stock to link in with a general sale and reduce accordingly ? Or do I just manually do this at some point through the year when i stock take and reduce the stock amount ?

Also under my profit and loss report, , opening stock now shows under “Less cost of sales” in red is this correct?