How do I enter stock and equipment from a competitor who is closing down.

Gillian_9673196
Gillian_9673196 Member Posts: 53
edited July 2020 in Reckon Accounts (Desktop)
Hello experts....We have just purchased stock and equipment from a competitor who has closed down.  Could some please tell me how to enter the stock?  We paid a lump sum so I am not sure if I enter the stock at the estimated reduced price, which will then change the averages of the stock we have paid full price for from suppliers OR is it better to create a whole new part number for each of those stock items.  Hope that makes sense?

Comments

  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited July 2020
    If this was me I would be talking to my accountant as to how these items should be valued (and hence recorded).  Rationale being that there could be taxation implications - particular the equipment which will presumably attract depeciation

  • Gillian_9673196
    Gillian_9673196 Member Posts: 53
    edited July 2020
    Thanks Bruce, I do understand those implications but not sure how reckon will be implicated etc. 
  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited July 2020
    I would record the equipment as "plant & equipment:cost" or similar.   If you run your depreciation from a spreadsheet then this can just be a bulk entry.   

    I'll let somebody else advise in relation to the stock issues - I only have limited experience with stock, valuing COGS etc.
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,366 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020

    Hi Gillian

     

    Trading Stock doesn’t attract depreciation so you can enter this as you normally would for any other stock purchase.

     

    The 30K instant asset write-off threshold for depreciation was increased (for eligible small businesses – check your specific business’s eligibility) to 150K for purchases made from 12/03/20 so if your business is eligible & the net equipment cost was below that, the equipment amount can be expensed (claimed) in full.

    If it was over 150K, I would enter it as CAG/CAF to an Asset account for depreciation pooling at EOFY.  Which Asset account you use for this depends on your Chart of Accounts setup - if you have an SBE Pool Asset account, allocate it to there a specific P&E Asset - or “Cost” subaccount – is fine.

    Don’t forget to include a detailed description on the transaction(s) for your tax agent at EOFY.

     

     

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    shazinoz2@bigpond.com

    www.accounted4bs.com


    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)