Oops! I have forgotten to stock it

Software: MoneyWorks accounting software

It’s classified as a non-inventoried item if “We stock it and treat inventory as asset” checkbox of an item is not checked. Instead of debiting the Inventory Asset account, the Cost of Goods Sold account will be realised when the purchase invoice is recorded into the MoneyWorks accounting software. Besides, the related transactions will not be included in the stock report.

If the “We stock it and treat inventory as asset” checkbox is checked after the related transactions have been posted, those items purchased earlier will not convert to inventory assets automatically, Only transactions thereafter will be treated as an inventory asset.

For example:

If the “We stock it and treat inventory as asset” checkbox of item A800 is not checked, the Cost of Goods Sold account will be debited when purchase of 10 units of A800 has been recorded.

Item profile

An additional 20 units of A800 have purchased and 5 units have sold to a customer after the “We stock it and treat inventory as asset” checkbox has checked, the stock on hand at MoneyWorks show as 15 units instead of the physical stock count of 25 units. This is because the initiate 10 units, which you had recorded before you decided to stock it is not recorded as an inventory, it expense off at the point of purchase.

You can pass a Create Journal to correct the stock on hand or consider using the Stocktake function to make an adjustment.

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