Use Your Own Inventory

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When a customer wants to use their own stock, there are a number of scenarios to consider.

In a larger company, where there is a person who specifically orders stock (not expenses), to order stock, they should raise a normal stock purchase order, then sell it on a job to themselves.

For a smaller organisation that controls all aspects of purchasing, an expense order can be used.

There may also be the situation where the stock is to be display stock, and eventually may be sold.

 

There are a few different methods to move the inventory into expenses if an expense order isn't used:

 

Method #1

A running sales job can be created where staff can add stock that is used in-house. This job will then be invoiced and the invoice total moved to the Expense ledger:

Add the stock to a job where Cust# is the company cardfile.

Adjust the sell price to equal the current COGS for the stock in question.

Change the default tax code on sell from G to X (exclude from overall sales reported in BAS).

Invoice.

 

Now the company becomes a debtor to itself. To move the stock COGS to the Expense ledger:

Open the company debtor record.

Record a debtors adjustment down against the appropriate expense code (typically 6-XXXX).

Make sure the tax code on adjustment is also X.

Save.

Use Own Inventory

 

The adjustment down will create a credit that should now be applied to the original invoice. To apply the credit:

Edit the debtor record again.

Select Payment By: Credit.

Choose the credit just created.

Apply the amount in the Paid Now column of that credit to clear the invoice.

Save and close.

 

Method #2

Similar to the above option, however this method will expense the total COGS to a nominated expense account via an entry on the original invoice using journal stock.

Set up a new Stock GL Group called INTERNALUSE and select the accounts the COGS are to be moved to when expensing this stock. Stock Type will be Journal.

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Create a running sales job, and add the stock that has been used in-house:

Adjust the sell price to equal the current COGS for the stock in question.

Change default tax code on sell from G to X (exclude from overall sales reported in BAS).

Add a journal stock entry with a negative value that equals the total invoice. This will move the total COGS to the relevant expense account.

Invoice.

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Method #3

Use the Stock Adjust Down function to remove the stock from the current stock on hand count, then use a general journal to move the total to Expenses.

Add a stock adjustment.

Select QTY – and the correct stock code to reflect which product(s) used.

Change to Finish.

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This stock adjustment down (debit) will move the stock COGS into the 5-XXXX Stock Adjustment account in the general ledger. It then needs to be journalled to the correct expense account(s):

Add a general journal.

Select the 5-XXXX Stock Adjustment account.

Enter the total in the Credit column (credit back the stock adjustment account), tax code X.

Select the 6-XXXX Expense account.

Enter the $total in the Debit column (debit the expense account instead), tax code X.

Finish and Save.

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Info

Separate the expenses by apportioning the total across multiple (debit) entries if desired.

 

The above options will report differently in Jim2, and should be checked with the company's accountant for the preferred option.

 

How to

Add a Document to Stock

Add Groups to Stock

Add Images to Stock

Add Multiple Stock Records

Add Service Stock

Add Vendor Codes

Apply a Credit Card Charge Using Stock

Backfill Stock Sold in Advance

Bulk Update Stock

Buy and Sell in Different Measures

Buying your own stock

Change a Serial Number on a Stock Record

Change Stock GL Group

Create Similar

Generate a Backdated Detailed Stock on Hand Report

Make Stock Inactive

Handle Warranty Stock

Import Vendor Pricing

 

 

Merge Stock Codes

Move Stock from Depleting to Asset

Print Shelf Talkers

Print Stock Reports

Rental Stock

Sell Stock in Advance

Set up Pricing

Stock

Stock Adjustments

Stop Users from Giving Discounts

Synchronise Stock

Track Serial Numbers

Unallocate Stock

Update Stock Prices

Use Stock Select

Use Your Own Inventory

View or Edit Stock

Write off Stock