Inventory & Products

David Gillam dave at davegillam.org
Sun Apr 15 09:49:46 EDT 2012


Taken from the book, Gnucash 2.4 Small Business Accounting (ISBN 978-1-849513-86-9)

Page 284:

Inventory management

Inventory management has the following essential characteristics:

		• ‹  Inventory is an asset. It doesn't become an expense until it's used or sold.

		• ‹  The loaded cost of an item may include, in addition to its basic cost, associated costs such as shipping costs.

		• ‹  You may be buying different batches of an item at different prices, and keep using them, as and when you need them. You have to decide on a costing policy of how to expense them – first-in first-out (FIFO), last-in first-out (LIFO), or average. There may be IRS guidelines about what options are available to you.

GnuCash doesn't have an inventory management module. If your small business has inventory, here are some possible ways to handle it:

	• ‹  If your business has a large inventory, by number or by volume, or you have heavy transactions, you may want to consider an open source inventory management application such as tracmor (http://www.tracmor.com/) or a commercial one.

	• ‹  If you have a smaller number of items and you have a modest number of transactions, you may be able to manage with a purpose-built spreadsheet template.

	• ‹  If you have only a handful of items and infrequent transactions, you may be able to make do with your own tables in a spreadsheet.

At the end of each month or each week, as the case may be, you can simply transfer the expenses into the appropriate expense accounts and adjust the asset value to match. The inventory management application or the spreadsheet provides the break up details of how the GnuCash entries were arrived at.

Cheers!

David
Gillam Data Services, Inc. - Computer Training, Consulting, & Service
dave at davegillam.com | www.davegillam.com | 214-543-2788

PS: Rabbi, I can help you with your website....


On Apr 14, 2012, at 11:20 PM, Jeffrey Cohen wrote:

> Hi
> 
> 
> 
> Does GnuCash have any inventory of stock/product facilities to:- 
> 
> .         generate invoicing to Customers by product codes
> 
> .         input quantities and pricing from Suppliers
> 
> .         enable stock/inventory counts to be checked against actuals
> 
> 
> 
> So far I am impressed by this accounting package.
> 
> 
> 
> 
> 
> Regards
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> cid:0FCB5E58-8ADB-4938-8D6A-AFC89D79A3BB
> 
> Jeffrey "Rabbi" Cohen 
> 
> 
> 
> DTE Group Logo
> 
> 
> DTE Consulting Co Ltd    [Thailand] 
> 
> 210/47-48 Soi Buakao [1 from Corner Soi 21] , Pattaya, Thailand
> 
> PO Box 116,Pattaya Post Office, Pattaya City, Chonburi, 20260, Thailand 
> 
> 
> Mobile = +66 (0) 8494 13 224 
> Landline Fax & Phone Thailand +66 (0)3 872 1001
> 
> 
> 
> Website:  <http://www.diwntoearth.com.au/> www.dteconsulting.net [ available
> but under constant update]
> 
> email:  <mailto:rabbi at downtoearth.com.au> rabbi@ dteconsulting.net 
> 
> Skype ID "rabbicohenjc"
> 
> 
> 
> 
> 
> _______________________________________________
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