Eric,
As you noted, they are an Asset. Now, I'm not a CPA or even a book
keeper (though my wife did that job for a number of years for an
architect). Here is how I am doing it.
1. Setup an Asset account for Inventory (or whatever you want to name it).
2. Setup an account for Cost of Goods Sold. (Mine is a contra account
in Income -- your CPA might want it as an Expense).
3. Divide your inventory value by the number of items (if only one type
of item or break out a similar Cost/Item for each type of item).
4. When you make a sale, reduce Inventory by the COGS for that item and
increase the appropriate account from step 2.
Note, I didn't use Credit/Debit as I forget which one is supposed to be
closest to the window. I think that changed recently when I switched my
desk around and the other side of the monitor is now nearest the window.
--Steve
On 12/20/22 06:55, Eric Chapman wrote:
I am wondering how, in GnuCash, to account for assets bought to resell
or other assets that will later be expensed as used.
I'm in the USA context. As far as terminology goes, I think UK and
other English speaking locales use the word "stock" to refer to
inventory, but, in my experience, that is not common in the USA
(indeed, the first definition of "stock" from Apple Dictionary: "the
goods or merchandise kept on the premises of a business or warehouse
and available for sale or distribution"; that is basically the
definition of "inventory" at the bottom of the wiki article referred
to below). I will try to use the word "inventory" so I do not confuse
the term I'm talking about with the one meaning ownership securities
of a company ("He owns 100 shares of XYZ Company stock.").
I found something relevant in the wiki:
https://wiki.gnucash.org/wiki/Inventory_Handling. Best I can tell,
GnuCash does not have any dedicated way to handle inventory flows:
purchases, sales, revaluations for market fluctuations, identification
of lots/batches).
If I want to deal with inventory now in GnuCash v. 4.13, any best
practices? I'm not talking about massive amounts of items or quantities.
Thank you!
Eric
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Stephen M Butler, PMP, PSM
stephen.m.butle...@gmail.com
kg...@arrl.net
253-350-0166
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