Stock not showing on the Profit & Loss report

Accounting
1

I have logged some purchases as ‘stock (assets)’ but they are not appearing on profit and loss reports in cost of sales . Why is this the case ?

2

Assets such as stock appear on the balance sheet rather than the Profit and Loss report.

3

Rather than logging purchases of this kind as “Stock”, log them as “General Purchases”. At the year end when you do a stock take you use journals to move the stock you have in hand at that point onto your balance sheet, leaving the correct cost of sales for the whole year in the P&L report. There are several previous threads that explain this, for example

http://community.quickfile.co.uk/t/stock-accounting-adjusting-stock-asset-code-1001/4828/9

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