We've created a part class called shop supplies. All the parts in
this part class are standard costed at zero. We expense the items as
they are purchased. The general ledger account tied to these parts
is a shop supply expense account number. Prior to updating to
version 5.1, when the PO was received, the expense account was
debited for the cost. Once we upgraded to 5.1 the system started
creating inventory variance entries because the standard cost was
zero and the PO actually had a price on it. So now at month end
close I simply run a Inventory/Wip report that shows the total
dollars adjusted for the shop supplies expense account and do one
journal entry to charge expense back to shop supplies.
By having the supply set up as inventory part, we can still track how
often being used (employees turn in a shop supply request to our
materials department and we adjust the material off inventory-zero
dollar transaction since standard costed at zero), set up reorder
points which show up on purchase queue, keep pricing by vendor. It
works for us.
Cheryl Mertz
Milford Enterprises
this part class are standard costed at zero. We expense the items as
they are purchased. The general ledger account tied to these parts
is a shop supply expense account number. Prior to updating to
version 5.1, when the PO was received, the expense account was
debited for the cost. Once we upgraded to 5.1 the system started
creating inventory variance entries because the standard cost was
zero and the PO actually had a price on it. So now at month end
close I simply run a Inventory/Wip report that shows the total
dollars adjusted for the shop supplies expense account and do one
journal entry to charge expense back to shop supplies.
By having the supply set up as inventory part, we can still track how
often being used (employees turn in a shop supply request to our
materials department and we adjust the material off inventory-zero
dollar transaction since standard costed at zero), set up reorder
points which show up on purchase queue, keep pricing by vendor. It
works for us.
Cheryl Mertz
Milford Enterprises