topic Thanks in Business & farm

End of 2016 my inventory cost was 3292 it wants me to put end of 2017. I bought more inventory in 17. Do I put the cost of new inventory minus the sale of the end of 16?

jason95491 — Sat, 01 Jun 2019 17:05:37 GMT

Yes - Your 2017 ending inventory will be your ending 2016...

DS30 — Sat, 01 Jun 2019 17:05:38 GMT

Yes - Your 2017 ending inventory will be your ending 2016 inventory (which is your 2017 beginning inventory) plus your inventory purchases less your cost of goods sold equals your 2017 ending inventory.

It says businesses with less than $1M in sales don't need...

jason95491 — Sat, 01 Jun 2019 17:05:39 GMT

It says businesses with less than $1M in sales don't need to report inventory. For some reason when I input the new cost (end of 2017 inventory) what I owe goes up. So by purchasing inventory and adding it onto the end of 2017 box, it seems I owe more than actually it being a deduction?

So since it says less than 1M sales don't need to report inventory, should I skip this section entirely, and just add the entire inventory cost including drop shipped items in the "Cost of Purchases" box instead?

When I do this my entire cost for all goods purchased thi...

jason95491 — Sat, 01 Jun 2019 17:05:41 GMT

When I do this my entire cost for all goods purchased this year was $16,707 I put this into the "Cost of Purchases" box and it says I owe nothing now. Before when I split the inventory from the drop shipped items it says I owe $922.00 which is not right because I had no profit this year.

Should I just ignore the inventory beginning and end boxes and proceed with just the "Cost of Purchases"box? Like stated, when I split the cost between the inventory on hand and the dropped shipped items, it says I owe more for some reason which is ridiculous.

Yes - you can just ignore reporting inventory if your sal...

DS30 — Sat, 01 Jun 2019 17:05:43 GMT

Yes - you can just ignore reporting inventory if your sales are less than $1M if you want and just use your cost of purchases. Just make sure that you keep track on your inventory for your own records.

Thanks

jason95491 — Sat, 01 Jun 2019 17:05:46 GMT

Thanks

Hi DeeS, I am trying to do the same thing but the softwar...

kaylynashly — Sat, 01 Jun 2019 17:05:47 GMT

Hi DeeS, I am trying to do the same thing but the software wont let me delete the section (using the trash can icon or by zeroing the amounts out).