INVENTORY RELATED

[jamiejiji26]

Are you familiar with NON-INVENTORY ITEMS?
If I sell a non-inventory item without purchase record, what will be my entry?

 

[BIG E]

How can you not have a purchase record for something purchased?
Even though not inventory, there should be a bill of sale, invoice, or something to acknowledge the purchase.

DR Cash
CR Purchased item Expensed

 

[jamiejiji26]

Thanks for your reply =)

We actually have the receipt but it's missing, and the previous accountant didn't bother to record or make an entry (maybe forgot).
Cause right now, I don't know where to close the sale of that item since its not in our inventory list.

 

[BIG E]

Aren't you able to request a duplicate copy of the receipt from the vendor?

 

[jamiejiji26]

Not Possible, that purchase was year 2018. No one knows where they bought that item.

 

[BIG E]

Sometimes you need to do a little detective work and reconstruct.
Was it an item that is normally sold by other vendors?
Is it an item that could be purchased through internet vendors who post
prices for products and go back to month/year of purchase to establish
the price at that time?
Then once you have that - then you need to consider where in the general
ledger that particular item would have been posted to.

 

[hirschcogmail.com]

How can you not have a purchase record for something purchased?
Even though not inventory, there should be a bill of sale, invoice, or something to acknowledge the purchase.

DR Cash
CR Purchased item Expensed

Hi

A non inventory item is an expense or overhead. If that is correct then you can record it as such. If you have lost the receipt then if it is in the bank statement then it is OK.

 

[jamiejiji26]

Thanks for the reply =)

is it possible to record the purchase this year? even it was purchase years ago?
I couldn't find any record of that purchase. I hate it. I don't know how I will close that sale.

 

[hirschcogmail.com]

Hi

If it is a large amount it is worth dealing with. If it is under £100 it is best to forget it. For my clients I would revise the accounts and
resubmit them for the year concerned. One is allowed to do so up to 4 years.

Kind regards