How to move inventory to cost of goods sold

xin2561
1 Post
User
New Zealand

How to move inventory to cost of goods sold

Dear Sir or Madam,

 

We are a property developer, we bought meterials and build the town houses. I coded those meterials into Inventory. Now the town houses have been completed and sold, how should I do to move the inventry into the cost of goods sold?

 

Thanks

 

Xin Zou

1 REPLY
MYOB Moderator Steven_M
18,825 Posts
MYOB Moderator
New Zealand

Re: How to move inventory to cost of goods sold

Hi @xin2561

 

Welcome to the MYOB Community Forum, I hope you find it a wealth of knowledge


When you create an item in AccountRight you get the options of "I Buy this item", "I Sell this item" and "I Inventory this item". If you select all three of those items you would get the option to select an Asset Account for Tracking Inventory, a Cost a Sales account and Income Account for Tracking Sales. 

 

Attachments.PNG


What this does do is when you purchase the item via Enter Purchases the item value will be placed into the Inventory account.

 

Attachments.PNG

 

When you go and sell that Item via Sales>>Enter Sales

  • The Inventory account is adjusted downwards as you are removing stock
  • The Cost of Sales account is affected
  • The Income account is affected by the selling price

Attachments.PNG


So in your case I would be reviewing the way that you got the item's setup and possibly look into setting up Auto-Build items for completed houses. This way you can build up an item (i.e. a house) and then when it is finished move it across to a completed house to on sell and have the cost of sales account adjusted.


Do let us know how you get on and if you require further assistance.


Kind Regards,
Steven
MYOB Client Support
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