As an Accountant who DOES use the Stock Status Report to reconcile my inventory, I exclude the Part Classes that are expense-type since, obviously, they won’t tie to my Inventory Accounts. I really can’t understand why people don’t use the Stock Status Report. What is your sub-ledger backup?
Second, with regard to the best way for accounting for expense-type items and when they hit the books, most of my clients will put the expense-type parts into an expense inventory account on the Balance Sheet and then as used will expense them rather than hitting the expense all at one time in one fiscal period. This balances and normalizes the expenses so that a 6-month supply of expense items doesn’t hit all at one time in one month.
Finally, with regard to Reason Codes, if the Accounting department tracks expenses at the department level, it would be useful for there to be more than one Reason Code for Shop Supplies, i.e. Shop Supplies - Paint Dept, Shop Supplies - Assembly, Shop Supplies - Fabrication, etc., with the corresponding GL Control Code coded to that department’s shop supplies expense account, so that the expense inventory is relieved upon the Misc. Issue and the correct department’s shop supplies expense account is charged. Otherwise, if all the costs go to one general shop supplies expense account, then one Reason Code, with the appropriate GL Control Code, would suffice.