Purchase of Goods and Materials For Resales

Accounting
1

Hello - is there a tutorial of how to handle purchases pf good and materials for resale and inventory tracking?

2

Hello @mcfc4heatons

You would record the purchases as normal but to see an accurate balance sheet as of a specific time (inventory as assets) you would need to process stock journals.

3

thanks, and when entering a purchase how are goods for resale distinguished from expenses? I don’t see an appropriate option when entering a purchases, or I am doing this completely wrong?

4

Hello @mcfc4heatons

Under your purchases in the chart of account you can add any additional codes if you wish to split out for analysis

e.g. 5001 - General Purchases, 5001 Purchase for resale

5

Thanks, I’m not really getting it… Probbaly will stick with basic spreadsheets for now.

6

When you enter your purchases by using purchase invoices you’ll see a category on the left. These are nominal codes that you’ll find in the chart of accounts. In short their split up into different parts like sales overheads and so on. The one group that Steve mentioned is for cost of sales which would be things you buy for resell. In most cases I think the general purchases category is the most suitable

7

Thanks, got it now …

8

Hi,
When you mention Inventory Tracking, are you wanting to do this by individual stock items ?
(Part numbers/Stock Numbers/SKUs)

9

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