Hello,
If my client, buys materials for stock or materials for a job, which nominal codes would I use for each?
Many thanks!
Vanessa
The easiest way of recording stock purchases is to post them all to the purchases account(s). You can put them all to the one account or separate different types of product if you prefer. The stock account in the balance sheet (1000 series) is where the stock valuation at period end is put. The journal is Dr stock in BS and Cr closing stock in PL. Your calculation for cost of sales is Opening stock plus Purchases less Closing stock. Hope this helps.
Roz
Very helpful! Thank you for both replies, much appreciated, Vanessa.
