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Reeceado
Level 1

How to record stock purchases

Hi

 

we run a clothing company. I’m wondering what the purchase of physical stock should be categorised as? Is it stock asset? Or something different ?

 

thanks!

1 Comment 1
john-pero
Community Champion

How to record stock purchases

What you are buying is Inventory that must remain as a current asset until sold.  When it is sold it is Cost of Goods Sold, which offsets to a degree your gross income from the sales.

 

Here is some info to digest Solved: Cost of Goods Sold (intuit.com)

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