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Inventory method — choose before you start

Sapera has two ways of posting inventory. Choose the right one before you begin.

Sapera can handle your inventory in two different ways in accounting terms. The choice affects when the value of the goods hits your result, and it is easiest to make before you start keeping stock.

The two methods, briefly

  • Cost of goods posted continuously (stock status) — the value of the item sits in inventory and moves to consumption when it is sold. Gives a continuous, precise picture of the inventory value.

  • Everything posted to operations — the purchase is booked directly as a cost; the inventory value is instead adjusted by stock count. Simpler, but less continuous precision.

Why choose early

The method determines how your figures look on an ongoing basis and how stock adjustment works. If you change method later, the history has to be thought through.

The choice of inventory method has accounting consequences. If you are unsure what suits your business, discuss it with your consultant or accountant.

Read more about the methods in Accounting and about the day-to-day work in Stock journals.

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