Stock Valuation
Kay Thompson
Registered Posts: 22 New contributor ๐ธ
Hi I have a client who imports a lot of his stock particulary from China.
When recording the stock in does he use the price it was purchased for or can he include the import and freight charges.
If he does not include the charges where should these be recorded.
Thanks
When recording the stock in does he use the price it was purchased for or can he include the import and freight charges.
If he does not include the charges where should these be recorded.
Thanks
0
Comments
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Imports
Hi
I would just record the stock at cost/net realisable value and put the carriage charges etc to carriage.
Hope this helps0 -
Yes, I agree with Anne, I had a client who imported costume jewelery & they recorded the items at the cost on the invoice - the freight charges were extortionate compared to the value of the items, but it would get too complicated to apportion the shipping costs accross the stock.0
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Anne Boleyn wrote: ยปHi
I would just record the stock at cost/net realisable value and put the carriage charges etc to carriage.
Hope this helps
Only downside to this is it could lead to misleading low closing stock figures?
I'm assuming compared to buying from the UK the stock is very cheap but delivery costs high.0
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