Zoho Books

When you create items of your inventory in systems like  Zoho  , you are asked to enter the SKU, Unit and HSN code of the item. Let us try to understand these terms and their use in this blog. Try one month free Zoho Books SKU ( Stock keeping Unit) The name may suggest that this is the unit in which this item are kept at warehouse or store. For example, a store may sell beer in the unit of cans but will purchase and may wish to maintain the record in inventory in the unit of crates. The name is a misnomer. SKU is essentially an Identification , of a particular item that allows to be tracked for inventory purpose.SKU is usually alphanumeric. For example, an Ice candy of large size in orange flavor may have an SKU as 155-LAR-ORA. Here 155 is the code of manufacturer or brand of the Ice Candy , 'LAR' is for Large and 'ORA' for orange. The point to be noted is that the business owner can create its own method of generating SKU. Same TV from a particular bran...

Introduction The Goods and Services Tax (GST) introduced on 1st July, 2017. There are various impacts of GST on business activities, like change in invoicing process, change in accounting process, etc. It has impact on valuation of inventories also due to reverse charge mechanism on goods under GST. This document prescribes the accounting treatment of GST on inventories. As per Ind AS 2 and AS 2, inventories are assets held for sale in the ordinary course of business (trader), in the process of production for such sale or in the form of materials or supplies to be consumed in the production process (manufacturer) or in the rendering of services (service provider). Therefore, inventories can be classified into: ( i ) Stock-in-trade; ( ii ) Raw materials; ( iii ) Finished goods; and ( iv ) Spare parts Valuation of Inventories under GST ...