This article explains how to enter the sale of a stock item that you’ve created in 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.
If you’ve scrapped stock rather than sold it, find out how to record stock that has been scrapped.
You can either record the sale of a stock item on an invoice or by explaining a bank transaction. Please note that doing both will result in the income being double-counted.
Selling stock on an invoice
If you’re selling stock on an invoice instead of explaining a bank transaction, navigate to the ‘Work’ tab at the top of the screen and select ‘Invoicing’ from the drop-down menu.
Select ‘Add New Invoice’ and follow the steps for creating an invoice in FreeAgent.
When adding a line item to the invoice, choose the unit type 'Stock' from the drop-down menu.
Select the stock item you are selling from the drop-down menu. If you’re selling more than one kind of stock item on the same invoice, you’ll need to add a new invoice item for each different stock item.
Enter the relevant details for the sale, including unit price, income category and VAT. You can create a new income category if you need to. Please note that you can’t create credit notes for stock items, so make sure the unit price does not have a minus sign in front of it.
Adding the sale of stock as a price list
If you regularly sell a batch of this stock item, you can add this item to your price list by ticking the box and entering a price list code.
Then next time you sell a batch of that stock item, you’ll be able to add it to your invoice from your price list.
Once you’ve entered the relevant details for the sale, select 'Create and Finish' to complete the process.
Explaining a bank transaction
If you’re explaining a bank transaction instead of creating an invoice, navigate to the 'Banking' tab at the top of the screen and select 'Bank Accounts' from the drop-down menu.
Choose your business bank account from the list.
Select the transaction that relates to the sale and select ‘Sale of Stock’ from the ‘Type’ drop-down menu.
Select the stock item you sold from the ‘Stock Item’ drop-down menu, enter how many units were sold in the ‘Quantity’ field and select the relevant income category from the ‘Category’ drop-down menu. You can create a new income category if you need to.
Select ‘Explain Transaction’ to complete the process.
What happens next?
When you record the sale of stock, the quantity you have on hand will go down. If you included the sale on an invoice, FreeAgent will only adjust the quantity once the invoice is marked as sent.
To check your quantity of stock on hand, select 'Settings' from the drop-down menu in the top-right corner and then select 'Price List & Stock'.
Select the 'Stock' tab.
The ‘Current Stock on Hand’ is how many units you have on hand at the moment, after recording any sales, purchases and stock which has been scrapped. This number will increase as you buy stock and decrease as you sell or scrap stock.