Product List in Stock

In order for your transactions to be processed correctly items within your product list have to be linked to a product group that has been setup with stock withdrawal. When your stock supplier invoices are processed in the system the charge will go to the stock account within the balance sheet. When the stock is sold the cost of the stock will come out of the blance sheet account and be charged to the cost of sales account within the Profit and Loss account. This is acheived by linking the product sold to a product group with stock withdrawal.

To ensure the correct cost of sale is being captured and charged to the Profit and loss account when a sales invoice is processed your product list needs to be linked to a product geoup with stock withdrawal.

• Select the menu option Product list from the Stock tab
• Select Product groups from the centre section of your screen
• Click on the edit icon against the product group you wish to change, this could be more than one dependng on how many products within your product list you are creating as stock items.
• Click on the drop down against Stock withdrawal and select Products with stock withdrawal
• In the Purchase cost box enter your stock account, in a default chart of accounts this will be account 1091, Stock account within the Balance sheet, alternatively click on the search icon if you have installed your own chart of accounts
• In the Cost of sales box enter your materials account, in a default chart of accounts this will be 5000,materials in the Profit and Loss account, alternatively click on the search icon if you have installed your own chart of accounts
• Ensure you have a revenue account for invoices liable and not liable for VAT, in a default chart of accounts these will be in the 4000's
  

This video explains the product list layout and product groups with stock withdrawal