I am setting up SAGE Business Manager nominal ledger and I think I am getting a little muddled up and need some clarity on which nominal ledger code to use for stock purchases for resale
Query 1: where to post Purchases for resale
Normally purchases are posted to purchases codes in Sage (5xxx series)
But what if the purchase is stock for resale? Should it not be posted to the stock account 1001? Then as sales are made we can use the op + additions – cl stock equation to work out COS?
Query 2 COS & Pricing calculation
My client wants to apply a fixed cost per stock item plus mark up for sales, is this the figure to be used for COS? Or is it an irrelevant calculation for COS in Sage and a pricing system to be maintained outside of SAGE
Query 3 Stock Valuation
If I use op + additions – cl stock to work out COS, can I not just use the balance of on the 1001- stock account to give me a value of stock for month end and year end calculations
I appreciate input
Replies (1)
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By definition, stock is calculated as the lower of cost or net realisable value for accounting purposes.
Not sure about all the sage posting requirements though.