Hairdressing supplies, what do I report it under

Question

I am new to sage and am wondering for hairdressing stock, colors shampoos materials etc, what would stock come under on the drop down when reporting? I have put it under raw materials but am now questioning myself 
 thanks in advance

DeneshS · Accepted Answer

Hi Kelly Hilton 
 You can setup inventory items in Sage 50 by following How to create an inventory item . Then you can purchase the items using the Purchase Invoice module and keep stock as normal and you will notice the inventory on your balance sheet as an 'Asset" to your business. When you sell your services to your customers in the sales invoice, use a Service items such as "hair dressing" and with a 'Revenue' account of your choice. No need to include your inventory items in the customers bill yet. Then at the end of the week, you do an inventory count of the amount of supplies left and you will do a negative inventory adjustment (article How to enter an Inventory Adjustment ) to pull the items out of stock. The account you will use is going to be the Cost of Goods Sold expense account because Revenue minus Expenses = Profit / Loss. Hope this helps.

Sage 50 Canada

Hairdressing supplies, what do I report it under

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