There are two ways refurbishment can be handled in Jim2
1.Acquiring the second hand unit into stock, and invoicing it back out using a kit to include additional consumables, spare parts and labour.
2.Acquiring the second hand unit into stock and re-manufacturing it into a refurbished product with accurate COGS, including additional consumables, spare parts and labour.
The following covers point 1 above.
Set up a separate Stock GL Group from the finished goods GL's for stock on hand, COGS and income. For example, Stock GL Group Second Hand Machines, GL Account 11340 SOH - Sales - Second Hand Machines, GL Account 41040 Income - Sales - Second Hand Machines, GL Account 51040 COGS - Sales - Second Hand Machines.
This example assumes the GL will be a Sales GL. It may be preferable for it to instead be a Service GL.
Now we will set up the stock code that will deal with all incoming second hand machines regardless of condition.
This stock code is configured as per below. Note the GL Group, which should be separate to finished goods machines. Also note the generic description, which will be overwritten each time it is purchased on a purchase order.
And finally, the serialisation should be on purchase so we can track the machine's history.
When we acquire the stock we will use the Stats tab at the bottom to identify which unit we will use for our customer, which shows us the custom description of the individual machines as well as their serial numbers.
As you can see from the above example, one unit was brought in for $0 at the end of a contract directly from the customer, and we used a Debtor PO to purchase the stock. This also allows us to provide the customer with a credit for a trade-in which can then be applied to the invoice for the replacement goods. The other two were purchased from a vendor or wholesaler on a regular PO with differing costs.
If we wish to use method 1 to sell our copier back out to a customer, we simply use a sales kit to keep it very simple on the invoice to the customer, but provide all the detail inside the kit so it is all accounted for correctly
The customer only sees line 1 of the job on their invoice.
Alternatively we can re-manufacture the base unit, consumables and parts into a specific refurbished unit.