Re: Ledger-smb-users Digest, Vol 18, Issue 8

["Trevor J. Christensen" <..hidden..>]

To answer your very first question/email.......Certainly.  If you only intend on entering transactions via the GL, you need only create the two accounts via SYSTEM -> CHART OF ACCOUNTS.  I find it easiest to edit an existing account (i.e. change the number from 4000 to 4001 and 'save as new'.  Now you have both accounts 4000 and 4001.  If you find you want to enter transactions via the AR or AP functionality, you may need/want to adjust the check boxes (in the account display) to determine where/when and in what menu the accounts show up.  I hope this helps.

To answer your next question.....yes the difference (i.e. sales less cost) must be accounted for.  Here is a typical entry

Account |  Debit  |  Credit  |  Notes
=========================================================
CASH       500                  Post sale of bread (or if on account post to AR)
SALES                 500      
COGS       400                  Post cost of bread sold (or if on account post to AP)
CASH                  400      

The difference (your profit margin will show up in your income statement (until you close it out for year end).

Trevor


Martin Prior wrote:

On Fri, 08 Feb 2008 04:08:51 +0800,  
<..hidden..> wrote:

  

I am using one of the standard chart of accounts provided with  
Ledger-SMB.
One of my activities is baking bread. I have a seperate program which
takes care of producing invoices and calculate the costing.
I would like to add two accounts "Sales - Bread" and "Cost of Sales  
Bread".
Currently "Sales is 4000 and Materials Purchased is 5000, I want them  
left
alone because I do some manufacturing of other products and they appear
under those accounts.
I only want to make entries via the general ledger at the end of each
month for the "Cost of Bread sales" and "Sales - Bread"
What entries do I need to make to achieve this? Could I simply do 4001
Sales Bread 5001 Cost of Sales Bread?
    

With reference to the above. I have figured out how to set up those two  
accounts. However there is a flaw. I cannot simply post sales and cost of  
sales because the transaction will not balance. Where do I put the  
difference between sales and cost of sales? Profit and Loss Account?

Regards

Martin Prior