Closing Stock
Software: QuickBooks accounting software
Those users who use to read the traditional Profit and Loss report tend to have difficulty when come to reading QuickBooks’ Profit and Loss report. Usual questions that they will be asking are:
- Where is my Opening Stock figure?
- Why can’t I see the Closing Stock amount?
Traditionally, the layout of the Profit and Loss report will be:
Sales 1000.00
Less Cost of Goods Sold:
Opening Stock: 300.00
Add Purchase: 500.00
Less Closing Stock: (200.00)
Cost of Goods Sold: (600.00)
Gross Profit: 400.00
However, the newer accounting software such as QuickBooks, presented the Profit & Loss report in such a layout:
Sales 1000.00
Less Cost of Goods Sold: (600.00)
Gross Profit: 400.00
In this case, where is my Opening and Closing Stock?
From your Balance Sheet report, change the report date to “as of this financial year”, the value in the Inventory Asset account (Stock Asset account) is your closing stock value.
To print your opening stock value, simply use “Balance Sheet Prev Year Comparison” report. This report shows current year and last year value side-by-side. Under the Inventory Asset account, the value as of your last financial year will be your current year opening stock balance (last year closing is this year opening) and current year value will be your current year closing stock value.