Taking stock of your buying and selling

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If you are a company involved in retailing items holding stock of your products is vital.

However, any stock is money tied up, and getting the level correct can be a tricky business.

You need to ensure that you have sufficient stock of the right items to service your clients needs whilst also making sure you don’t have too much cash within your stock and that you don’t end up with that one obscure item that will sit on the shelf gathering dust for ever more!

Sage 50 Accounts programs come with differing levels of stock functionality to aid you with this.

The system works on a first in first out system, so if you have several items in stock perhaps at differing prices, the first one you brought into stock will be the first one you sell.

You are able to set reorder levels for each individual product meaning you can keep an eye on stock getting lower and order it just before you need it.

The reorder quantity can be important if your supplier offers bulk quantity discounts, and makes sure you are always getting the most economical pricing for your business.

Sage 50 Accounts Professional also features sales and purchase ordering modules allowing you greater control.

You can see what you have in stock, what you have arriving into stock and what sales orders already have stock committed to them. Purchase orders can be generated directly transferring all required information automatically.

There are options for bill of materials control as well as simplifying the administration of intrastat returns.

The program has a comprehensive reporting function and stock take facility and stock valuations are easily available.

Gail Kristiansen is a book-keeping manager for Rennie Welch LLP and can be contacted on gail.kristiansen@renniewelch.co.uk or 01573 224931.