[GNC] How to handle inventory assets in GnuCash?

[Michael or Penny Novack]

On 12/20/2022 9:55 AM, 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 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 

Gnucash is only doing the "general ledger" part of accounting.


An "inventory system" is doing a LOT more than that, but gnucash can 
deal with the part of inventory accounting that affects "general ledger"

However an "inventory system" would be doing a great deal more than that 
(beside "feeding" general ledger). It might be doing things like storing 
sources, alternative sources, reorder levels, shelving information 
(where ARE those widgets?). It would have its own "reconciliation" 
process (verify by physical inspection, record discrepancies. etc.). 
Gnucash does none of those things.

A complete "business system" would contain numerous other parts besides 
general ledger. Some of these parts might be common to all sorts of 
businesses but others specific to type of business. Thus a dealer in 
widgets  would need inventory but a dealer in services might need 
billable hours and both might need HR/payroll.

Michael D Novack