Available in Microsoft Office Accounting Professional 2009 only.
Stock products are the goods that a company holds to sell to its customers. Stock products may be either acquired or manufactured. Stock products are the most important segment of current assets in an organisation. Current assets are those assets that are at the centre of an organisation's normal operating cycle. An operating cycle is the process of converting the commodities dealt in business into cash again. The stock products, as part of the current assets, are shown on the assets side of the Balance Sheet report.
Microsoft Office Accounting 2009 tracks all the activities that your company has with stock products in the normal course of the business. You can bring stock into your newly installed Office Accounting 2009 from a legacy system, you can create a new stock product in your existing installation of Accounting 2009, you can procure and sell stock products and you can make quantity and value adjustments for the stock products.
When you procure stock products from your suppliers under various terms of business, Accounting 2009 makes necessary accounting entries in the financial accounting and Purchase Ledger. When you sell stock products to your customers under various terms of business, Accounting 2009 makes necessary accounting entries in the financial accounting and Sales Ledger. You can also make cash procurement and cash sales of stock products and make and receive payments by cash or credit card.
Accounting 2009 provides a number of stock reports that are designed to give you up-to-date and accurate information on stock products at any specific point of time. From the Price List report to the Product and Service Profitability report, the reports provide vital information for appropriate decision making.
If your company sells products, you can track stock through the various stock and sales reports. Similarly, if your company buys products, you can track stocks by the various stock and purchase reports. When you set up your company, you enter stock and service products and beginning quantities and values in the Company Setup Wizard.
When you set up your company, until you close your books, you enter products and beginning quantities and values in the Company Setup Wizard. When you create a new stock item using the Stock form, you enter stock information, including the reorder point and the quantity on hand. When you create a product with a quantity on hand, the total value of the products is added to your Opening Balances account with a posted date of your company start date. When you purchase and receive products, they are added to stock. When you add products to an invoice, they are subtracted from stock.
You can set a preference on the Suppliers tab of the Preferences dialog box to check for the product quantity on hand. If you create an invoice with a product that is not in stock, a message warns you of negative stock.
Stock appears in the customer process (on quotes, sales orders, invoices or customer credit notes) and in the supplier process (on purchase orders, goods received notes or supplier purchase invoices).
When you purchase products, Accounting 2009 credits the Accounts Payable account (Purchase Ledger) for the supplier and debits the Stock Asset account. When you sell the products, Accounting 2009 credits the Stock Asset account and Sales Income account and debits the Cost of Sales account and Accounts Receivable account (Sales Ledger). Accounting 2009 uses the first-in, first-out (FIFO) method of stock valuation.
If you need to revalue your stock, on the Suppliers menu, click Adjust Stock. You can adjust stock quantity or quantity and value. This can be used, for example, to correct mistakes made when entering opening balances, adjusting for changes in stock value or adjusting for changes in the quantity of your stock based on real stock counts after taking stock.