How to record the purchase of stock

How to enter a purchase of a stock item into FreeAgent.

Here’s how to enter a purchase of a stock item into FreeAgent. You must create the stock item first before you do this.

You can do this either by entering a bill, an expense, or a bank payment.

Bill

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.

Bank payment

When you explain or enter a bank payment, use 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.