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 the cash accounting basis.
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.
Create the new bill as normal.
When you come to choose the category, choose 'Purchase of Stock', which is right at the bottom of the list.
FreeAgent will then bring up two new boxes, to let you choose the stock item and enter the quantity.
Choose the stock item from the drop-down menu, and enter the quantity you bought on this bill.
Then finish entering the bill as normal.
Please note that, because of the way FreeAgent deals with stock items, 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.
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.
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.