Unit 7 - Stock transfer

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
When you are calculating the gross and net profit, total sales etc of more than one branch or shop, do you include the stock that has been transferred between the branches or do you ignore it? If you do include it, which branch do you include it on?<BR>Any clarification will be greatly appreciated!!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 - Stock transfer

    You add back the stock to the branch it was sent from if it had not arrived at the month/year end in question to calculate the figures etc.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 - Stock transfer

    what if there are no outstanding transfers and it tells you to work out the sales and net profit etc, do you add the transfers back in when working out GP or NP or leave it out all together and put a seperate colum in later on? I'm soooo confused on this!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 - Stock transfer

    What books r u working on and what question please, then i can see where u r coming from, as confused.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 - Stock transfer

    I don't know what text book you are using, but the Osborne Book states:<BR><BR>"Transfers should not be included in the sales or purchases of the group. If transfers are recorded as part of sales (transfers out) or purchases (transfers in) for branches or divisions, they should be deducted or excluded when compiling the group figures"<BR><BR>Hope that helps!<BR><BR>Lynn
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Unit 7 - Stock transfer

    That makes sense now.<BR>I read it as a query as to what to do with the stock in transit.<BR>Cheers.<BR>sillybilly!<BR>

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