UNDERSTANDING STOCK

Courses 2011015 and 2011016

Products• Physical items• Used internally, or sold

Services• Items not physically counted• Phone, electricity, computer support,

classes

Fixed Assets• Physical items• Items used internally, that are not

consumables

Products and services are treated differently

Internally used stock

Is this item going to be used up?orIs it a Fixed Asset?

Depreciable?

No – Expense itYes – put it to the fixed assets clearing account, and create it as an asset in the FA module

True cost of stock

Staff time and phone calls

Agent fees

Insurance

Freight

Duty

Item price paid to supplier

Get this wrong and you will not know what is making you a profit or a loss

If you do service jobs, you should use Job Costing

COMPARATIVE TOTAL IS IN GBP

ON COSTS IS IN KINA

These are the total of all extra costs involved with this product

ZOOM IN TO ADD THE ON COSTS

• If you do service jobs

• If you rent properties

• If you do warranty work

• Get Job Costing, and put stock usage, staff time, and outside services against the job to see what real profits or losses you are making

This is the purchasing system for stock

Requisitions

Goods Received

Supplier Invoice

Goods Returned

Supplier Credit Note

Purchase Order

• If any of these steps are kept manual, all staff do not have full information

• If you have field manual POs, enter them in here to have full information

• Delete out old documents, so that all staff have full information

• Each document feeds into the next. Information is entered only once

• If you sell physical products or services, get a Web Shop

• If you do not, you can be sure that your competitors will

• These will feed straight into your Attaché as orders or invoices (your choice)

CONTROL YOUR STOCK AND YOU CAN CONTROL YOUR

COMPANY