Inventory tracking - error in account entries?

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Wendi
Wendi Member Posts: 14 ✭
edited February 2017 in Reckon Accounts (Desktop)
Reckon 15.... Currently we do not have the requirement of tracking stock numbers, BUT we require to be able to record obviously cost and sales values. I have only just started using Reckon accounts, so not familiar with the product. I have found that the customer invoicing is creating entries into the Cost of Sales account (qty x ave cost price) but the cost has already been recorded from the Bill from the supplier, therefore overstating the cost of goods. The opposite entry is also being placed into the inventory asset account, as we do not require this tracking, how do I stop this please?

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  • John G
    John G Reckon Staff Posts: 1,570 Reckon Staff
    edited February 2017
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    Hi Wendi,

    Welcome to the Reckon Community.

    This may not be a problem.

    When you purchase inventory the cost is booked to the Inventory Asset account - a Balance Sheet account.  

    When an Inventory Item is sold, its average cost is transferred from the Inventory Asset account and booked to the Cost of Goods Sold account, so that a Gross Profit can be calculated on the Profit and Loss Report.

    Otherwise, the problem may be in the account assignment in the Inventory Item setup:

    image



    Hope this helps.


    regards,
    John

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