How to enter the purchase of stock

This article explains how to enter the purchase of a stock item into FreeAgent.

Please note that FreeAgent's stock functionality won't be available if you have an unincorporated landlord account or if you're preparing your accounts using cash basis accounting.

You'll need to create the stock item before recording the purchase by entering a bill, an out-of-pocket expense, or explaining a bank transaction.

Bill

Add the new bill as normal.

When entering the details for the purchase, choose 'Purchase of Stock' from the bottom of the 'Spending Category' drop-down menu.

Choose the stock item from the 'Stock Item' drop-down menu and enter the quantity you bought in the 'Quantity' field.

Select 'Save and Review' to add the line item to the bill.

If you’ve bought this stock to sell on to a customer by way of a project, link the bill to the project but put it as not rebilled.

When you invoice for the sale of this stock, instead of adding expenses, you’d then add it as a separate line to the invoice.

Bill credit notes can’t be created for stock items.

Bank payment

Navigate to the 'Banking' tab at the top of the screen and select 'Bank Accounts' from the drop down menu.

Choose the bank account which was used to purchase the stock.

You can then either explain or enter a bank payment as type 'Purchase of Stock'.

The additional boxes for the stock item and quantity will then appear under 'More Detail' for you to fill in.

Expenses

Create the new expense as normal, using type 'Payment', and category 'Purchase of Stock'.

The extra boxes will then appear for you to fill in the stock item and quantity that you bought on this expense.

Again, if you’ve bought this stock to sell to a customer by way of a project, link the expense to the project but do not rebill it.

Changes in quantity

When you buy stock, the quantity of that stock item (which you’ll find by selecting Settings, choosing Price List & Stock and then selecting the Stock tab) will go up.