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Product Category is one area within Readysell whereby you can assign a different general ledger account if you wish to use department breakup eg Sales Revenue Admin, Sales Revenue Stationary etc.
You would firstly create the general ledger chart of account for each department and then assign these accounts to the appropriate product category levels.
You may also want to break up the cost of goods area by the same department. 



General Ledger Account breakups within the product category:

The accounting effect of when a stock item is sold, the cost of the product is removed from Stock on Hand and put to Cost of Goods.

Therefore this means the two accounts should be different if the product is being tracked for stock purposes as opposed to non-stock purposes.

Cost of Goods Sold: should be a profit & loss account

Sold Stock: should be a stock on hand account

Purchased Stock should be the same as Sold Stock for stock controlled products, to avoid a discrepancy between recording the purchase (increase in stock) and recording the sale (decrease in stock) unless the product is a non-stock product and a type of service or expense. EG Freight Inwards, the purchase general ledger account would be the general ledger account for Freight Inwards.
The accounting effect of when a stock item is received, the cost of the product is removed from Accrued Stock (Credit) on hand and put to the Stock on Hand (debit).
When the purchase receipt is then Invoiced, the accrued stock on hand figure is negated (debit) resulting in a nil effect.
For a non-stock product, (expense or service type eg freight inwards), the accrued stock and stock on hand is using the same general ledger account and this is because normally there is no cost on a non-stock product.

Procedure in respect to creating sub-department chart of accounts

Highlight the main general ledger account eg Sales Revenue 61010
Click on COPY
Change the Account-id to be 61012 and description to be Sales Revenue Header
Click On Save
Go Back to 61010 and rename it to eg 61010FUR and change the description to be Sales Revenue - Furniture.
Ensure that 61010FUR on the settings tab, that the P&L Parent and Bal Sheet Parent account are both changed to point to 61012
Click on SAVE
Go back to general ledger account 61012 and change that to be 61010 and Click on Save
Check that 61010FUR on the settings tab, that the P&L Parent and Bal Sheet Parent account are both now 61010

Repeat steps by highlight the sub-department gl account 61010FUR and name it eg 61010ADMIN with a description of Sales Revenue - Administration etc

Continue until you have created the appropriate sub-departments in the areas of the chart required.

The task may need to be run to refresh general ledger balances and/or re-dissect if you have created new gl accounts and assigned them to categories

Speak to Readysell


Product categories can be used to assign a cost when you SELL non-stock products. The methods apply to all products in the non-stock category.
If there is NO cost on the non-stock product, then set the cost method on the Product category to be a type = NONE.
If there is a cost on the product and the 'Non-Stock Costing Method' is set to anything else other than NONE, then the cost method on the category will apply.


Notional average costing for eg on labour products

Costing methods on non-stock products can be set up to have a notional/estimated costing.
Here you would set up the Costp1 on the primary supplier for the product within the non-stock product category.
Then apply the costing method on that category as being Product Supplier Cost eg for products such as Labour.