UK Stock take adjustment

Oct 5, 2023
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United Kingdom
Hi there

My client has carried out a stock take 2 days early. We are on accrual accounting (Xero).
I have calculated the profit margin percentage up to the date of stock take and then calculated the COS post stock take with that percentage.

Was that the correct thing to do? Or do I take the stock take figure and deduct sales of stock post stock take date and add in purchases made.

My next question is my software does not take into account the opening and closing balances of the creditors when calculating purchases. Should I use those figures in my calculations?

I think I’m over complicating it but we have auditors in soon so it needs to be correct and I am very new to all of this.

Thank you

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