Lesson 38 of 64
Stock, finance & operations
Understand accounting, FIFO costs and profit reports
Review opening balances, linked transaction entries, customer and vendor ledgers, and business profit.
Before you begin
Use accounting permissions and a consistent reporting period. Prepare starting balances if moving an existing business into Feemo.
Step by step
- Review the chart of accounts and opening balances with the responsible person before normal trading starts.
- Record purchases, sales, payments, expenses and returns in their normal operational screens. Review the linked accounting entries before adding manual journals.
- Understand FIFO: if ten units cost 40 each and the next ten cost 50, a sale of twelve units uses a cost of 500: ten at 40 and two at 50.
- Review customer and vendor ledgers, cash or bank activity and reconciliation records for the same date range. Investigate missing or duplicate source records.
- Compare Trial Balance, Profit & Loss and Balance Sheet. Product gross profit deducts sold stock cost; business net profit also reflects expenses such as rent and salaries.
Check the result
Use the same company, dates and filters across reports. A cash balance and a profit figure measure different things.
Common question
Should I manually repeat every sale in a journal?
Review the operationally generated entry first. Repeating it manually can duplicate balances; manual adjustments need a clear reason and accounting review.