David,
On Tue, March 22, 2022 2:32 am, David Long wrote:
> Best to use system which has inventory accounting as then you won't have
> to
> worry about accounting double entry as system will generate it for you
> automatically.
Perhaps...
> When you enter a purchase invoice it will have a quantity purchase field
> so
> item will be put into stock at cost and quantity. Then there will be a
> manufacturing transaction which will take it out of raw materials and into
> finished stock (assemblies) at cost and quantity.. When it's sold it there
> will be a sales transaction in quantity and price which will generate an
> invoice and take item out of finished product stock in quantity and cost,
> and then calculate the sales less cost of goods sold so you know your
> margins
>
> Hardly any of this can be done by GnuCash so you will need to use spread
> sheets and have a course in accounting.
I would argue this statement is incorrect and misleading. Indeed, I would
say *MOST* of this can be done in GnuCash, although it might not be as
seamless as it could be. For example, when you make a Vendor Bill in
GnuCash, you can send it into an Asset instead of an Expense (which
includes Stock/Mutual accounts). Similarly, when you make a Customer
Invoice, you can pull from an Asset instead of Income.
The difference in the sale and purchase of the asset is your Income (margin).
I agree that this is not as seamless as it could be in GnuCash (I admit,
when I originally wrote the business features I did it from the point of
view of running a consulting company, not a manufacturing company -- but I
did attempt to add the features to make the latter *possible*, if not
necessarily seamless).
> Plus ,a half decent accounting system which has inventory accounting would
> also have sales and purchase order management and a bill of material
> system
> to hold your soap recipes.
So having an inventory system is a requisite for an accounting package to
be "half-decent"? Huh?
The "Job" feature of GnuCash was an attempt as a purchase-order solution.
There was also the concept of an "Order" (which was an attempt at
something between a PO and a Quote), but those were never completely
finished and I believe have since been removed. That notwithstanding, I
would argue an accounting program is NOT the right place to maintain
recipes.
> David
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
-derek
--
Derek Atkins 617-623-3745
de...@ihtfp.com www.ihtfp.com
Computer and Internet Security Consultant
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