Software: MoneyWorks version 7 accounting software
When creating a Product item in MoneyWorks accounting software, you have an option of setting it up as “Count it” or “Stock it”.
If you just want to count the quantity on hand without tracking stock value on hand, then you can just check the checkbox for “We Count it”. Whereas if you need to track the stock value on hand, then you should check the checkbox for “We Stock it and treat inventory as asset”.
Count it — is a non-inventory item. When item purchased, the double entry will be debited the Cost of Goods Sold account and credit the accounts payable (or Bank account if payment transaction is being used instead of a Purchase Invoice). MoneyWorks will debit the Accounts Receivable and credit the Sales account when “Count” item is sold; and the quantity sold will be less off from the “count”. To record the opening balance of the “Count” item, enter the quantity in the “Count” field under the Inventory tab of the “Count” item profile.
Stock It — is an inventory item. When item purchased, the double entry will be debited the “Stock on Hand” account (Inventory Assets) and credit the Accounts Payable account. The “Cost of Goods Sold” account will not be realized until the item is sold. The double entry of the Sales Invoice transaction will be:
Debit Accounts Receivable
Debit Cost of Goods Sold
Credit Stock on Hand (Inventory Assets)
Assuming you provide Camping Services to school, T-Shirts are issued to the student during campfire night. Since it is part of the package, you may just want to track the quantity on hand instead of treating the T-Shirt as a stock item. In this case, you may create the T-Shirt item as a “Count” item instead of a “Stock” item.