Hi
How would QB handle the following:
I get some consignment stock from a supplier. I then sell this stock lets say on the 1 of November 2005. My supplier only invoices me for that stock on the 15th of December 2005.
Surely that will give me a cost of sale of 0 for that item as it was not mine yet when I sold it. How should I handle this to keep the accounting integrity inplace.
Thanks
On 1st November "Receive Item" from supplier. The item will have the cost average value of previous purchases on any reports. These are reports, not accounts, by the way. If first time purchase then it will be zero at this point.
You then Sell the item. Goods in = goods out. Your COG isn't 100% accurate at this point. Awaiting bill from supplier.
On 15th December you "Enter Bill for Received items" with tax date of
15th December. At this point your "Accounts" are correct.Try to avois doing this over Quarterly or Annual reporting periods otherwise you have to General Ledger values to get it correct.
This applies even if your supplier invoices you on the 1st November but doesn't post the invoice for a few days. As soon as you receive goods with only a delivery note then "Receive Items"
Stan
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