How to manage inventory stock

How to manage stock in Sage Accounting. Manage your inventory levels to maintain the right quantities and control cash flow.

Create Stock type product records by following the article Add and edit products (stock and non-stock) and services. When you buy and sell these items, the system increases or reduces the number in stock and records the value.

Stock movements

Update stock item levels and values when you add stock items to invoices and credit notes. Record stock movements each time you buy and sell stock to track inventory. Each stock movement has a transaction type, indicating whether you added or removed stock.

1. Go to Products and services.
2. Select a stock item to see its stock movement transactions on the Activity tab.

Transaction Type	Movement Type	Details
Sales invoice	Goods Out	The system decreases the stock level. You can’t add a stock item to an invoice if you don’t have enough in stock.
Sales credit note	Negative Goods Out	The system increases the stock level with returned goods. To credit a price change, reverse the original invoice with a credit note, then issue a new invoice with the correct price.
Vendor bill	Goods In	The system increases the stock level and updates the last cost price and average cost price.
Vendor Credit Note	Negative Goods In	The system decreases the stock level upon the return of goods to the vendor and updates the last cost price and average cost. To credit a price change, reverse the original invoice with a credit note and issue a new invoice with the correct price.
Add stock via an adjustment	Adjustments In	The system increases the stock level. Use the cost price entered on the adjustment to calculate the value of the stock movement. Your general ledger accounts don’t post this transaction.
Remove stock via an adjustment	Adjustments Out	The system decreases the stock level. Multiply the stock record's cost price by the adjustment quantity to calculate the adjustment cost. You don’t post this transaction to your general ledger accounts.

Stock value

Track the number of items in stock and record their value. Show stock value as an asset on the Balance Sheet. When you sell stock, it becomes a cost and appears on your Profit and Loss as a cost of sale. This ensures the Balance Sheet reflects only the value of stock you still have.

Recording Stock Value

1. Record the purchase of stock items against an Asset general ledger account.
2. Set a default ledger account for each stock item to ensure accurate posting.
3. Create a journal entry to transfer the sold stock value from the Balance Sheet to the Profit and Loss report. Contact an accounting professional for advice on which accounts to use. 

How to enter existing stock

When you start using stock, enter the quantity and totals for any stock on hand to ensure inventory and report accuracy.

Enter existing quantities for:

New Stock Items

1. Select I have existing stock on hand.
2. Enter the details in the Opening Balance section of the Create Item window.

Existing Stock Items

1. Select the item on the Products and services list.
2. Select Adjust Stock Level to create a stock level adjustment.
3. Create a journal to show stock value as an Asset (Debit) and balance with a Credit to a holding account. This increases your stock assets.
4. At year-end, ask your accounting professional where to move the amount in the holding account to prevent double-accounting of stock value.