There are three accounts relating to stock in QF, opening stock, closing stock and 1001 stock (asset) I already have an entry in opening stock which has been created from stock purchases prior to opening (03/03/2025). I am currently coding new stock purchases to 1001 the asset account. I need to understand the entries when I conduct a stockcheck on 30th April which will be our first quarter end. As the 1001 account is in the balance sheet I thought that this would be the account that holds the closing stock balance therefore the stocktake entry would be debit cost of sales and credit closing stock but I am now confused! Can anyone help please?
Instead of coding stock purchases to 1001, code them to general purchases (or some other code in the 5000 range). You only touch the 1001 nominal when you do a stocktake.
When you do your stocktake you then journal the final value of stock on hand as credit “closing stock” and debit “stock” (1001). At this point your total cost of sales on P&L will show as your opening stock plus general purchases minus closing stock - what you started with plus what you bought minus what you have left.
Next stocktake you do the same thing - journal the previous period’s closing stock value from credit 1001 to debit opening stock, and the current period closing stock value from credit closing stock to debit 1001. Again this makes your total cost of sales for the period equal to opening plus purchases minus closing.
That makes total sense, thank you so much Ian