[GNC] How to handle inventory assets in GnuCash?

[Eric Chapman]

Steve,

Thank you. I also think that is a perfectly good way to do it. I do 
understand Cost of Goods Sold (and I think it should be contra the 
related sales / revenue (income) account.

That's the way I'll do it.

Thanks so much!

Eric

On 12/20/22 11:25, Stephen M. Butler wrote:
> 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.
>
>