Worked scenario
Exchange gold weighed, tested and valued in ninety seconds
Exchange is a purchase transaction settled inside a sale, and recording only the net leaves the shop unable to say what it paid for metal.
3 min read
A customer brings old ornaments against a new purchase. Weight is taken, purity assessed, a deduction applied for stones and solder, and a figure agreed. The sale completes with one net number.
Two transactions recorded as one
The shop has sold an item and bought metal. Netting them means the purchase price of that metal is not recorded anywhere, so the eventual refining yield cannot be compared against what was paid.
Deductions need to be itemised
Not for the customer's benefit alone, though it helps. Itemised deductions are what let a shop check, months later, whether its assessment practice is consistent between staff and whether it is systematically generous on a particular kind of piece.
What changes
- Old gold recorded as its own transaction with weight and assessed purity
- Deductions itemised rather than absorbed into a net price
- Metal acquired through exchange valued separately from purchased stock
- Exchange margin visible over a period
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