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:
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. 
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. |
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. 
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.  |
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. 
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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The above options will report differently in Jim2, and should be checked with the company's accountant for the preferred option.
Further information
Consignment Stock for Customers
Kitting v Packaging v Manufacturing
Backfill Stock Sold in Advance
Buy and Sell in Different Measures
Change a Serial Number on a Stock Record
Export a Stock Report to Spreadsheet
Generate Backdated Stock on Hand Report
Move Stock from Depleting to Asset
Stop Users From Giving Discounts
Update Existing Vendor Pricing