Examples

Expense product upon purchase

Important! This method was not discussed as part of this document and the example is only included to illustrate the differences with the other expensing methods.

	Journal type	In/Out	N/C	Description	Debit	Credit
Purchase Invoice	PI1	In	5000	Materials Purchased	45,00
			2201	VAT on Purchases	7,88
			2100	Creditors Control Account		52,88

Examples for Expense product to P/L when items are removed from stock

When you have set up the software to Expense product to P/L when items are removed from stock, you will notice that this leads to a different way of posting product costs than

what you may have been used to under the other method. Thus, it could be helpful to look at the examples below to see what this expensing method will look like in your books.

Journal types

SM1 – stock movement journal created based on the receipt of goods (and when adding products via a stocktake)

SM2 – stock movement journal created based on the despatch of the product to a customer

PIF1 – purchase invoice, posted at the time of purchase

SI1 – sales invoice, posted at the time of sale

The examples are based on the control accounts in Mamut and on a product with a purchase price of £45 and a sales price of £100.

Product price settings
Purchase Price	45,00	£
Expenses	5,00	£
Cost Price	50,00	£
Gross Profit	50,00	£
Mark up in %	100,00	%
Sales Price	100,00	£
Purchase Price with Supplier	45,00	£

Example 1: Default Journal Entry where Goods are Counted in via a Stocktake

	Journal type	In/out	N/C	Description	Debit	Credit
Goods receipt at stock take	SM1	In	1004	Bought in Stock	45,00
			5203	Change of stock		45,00

Goods despatch	SM2	Out	1004	Bought in Stock		45,00
			1099	Stock delivered, not invoiced	45,00

Sales Invoice	SI1	Out	4000	Sales		100,00
			2200	VAT on Sales		17,50
			1100	Debtors Control Account	117,50
			1099	Stock delivered, not invoiced		45,00
			5000	Materials Purchased	45,00

Example 2: Posting from Goods Receipt at Purchase, to Invoicing the Customer

	Journal type	In/Out	N/C	Description	Debit	Credit
Goods Receipt Purchase	SM1	In	1004	Bought in Stock	45,00
			2110	Accruals, non-received invoices		45,00

Purchase Invoice	PI1	In	2110	Accruals, non-received invoices	45,00
			2201	VAT on Purchases	7,88
			2100	Creditors Control Account		52,88

Goods despatch	SM2	Out	1004	Bought in Stock		45,00
			1099	Stock delivered, not invoiced	45,00

Sales Invoice	SI1	Out	4000	Sales		100,00
			2200	VAT on Sales		17,50
			1100	Debtors Control Account	17,50
			1099	Stock delivered, not invoiced		45,00
			5000	Materials Purchased	45,00

Example 3: Posting of Receipt of Goods at the time of Purchase, and Invoicing the Customer for when "Post Stock Changes in Accounts" has been Selected

	Journal type	In/Out	N/C	Description	Debit	Credit
Goods Receipt Purchase	SM1	In	1004	Bought in Stock	45,00
			2110	Accruals, non-received invoices		45,00
			5000	Materials Purchased	45,00
			5203	Change of Stock		45,00

Purchase Invoice	PI1	In	2110	Accruals, non-received invoices	45,00
			2201	VAT on Purchases	7.88
			2100	Creditors Control Account		52,88

Goods despatch	SM2	Out	1004	Bought in Stock		45,00
			1099	Stock delivered, not invoiced	45,00
			5000	Materials Purchased		45,00
			5203	Change of Stock	45,00

Sales Invoice	SI1	Out	4000	Sales		100,00
			2200	VAT on Sales		17,50
			1100	Debtors Control Account	117,50
			1099	Stock delivered, not invoiced		45,00
			5000	Materials Purchased	45,00