I have the following setting for my Product for Inventory evaluation.
The chart of accounts for the above accounts is as below:
When the item is received the Stock Interim( Received) gets credited and the same is cleared when the bill is raised and payment is made to the supplier.
All my sales are done through POS and When the POS sale is done the Stock Interim(Delivered) Account is debited and the Stock Valuation account is credited resulting in Stock Interim(Delivered) getting reflected in the Balance Sheet.
As far as I understand the Stock Interim(Delivered) account is in nature of Cost of Goods Sold, So When I change the type of Account as Expense it gets directly reflected in the Profit and Loss Account.
Or should I create a separate Cost of Goods Sold Account with type as expense and transfer manually from the Stock Interim(Delivered) to the Cost of Goods Sold Account.
Kindly Guide which method is correct.
Hello! Did you get an answer regarding how to clear/reconcile the Stock Interim (Delivered) acccount?