Hi all,
I have some items that are either bought at a cost through gp or can be given for free i.e. at no cost
but are not for sale whatsoever,but they are issued to marketing people,so the quantities need to be tracked in the inventory module i.e. the marketing materials given to sales people.
RomRyan
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Romryan
I would like to recall what I have mentioned above, it states the following:
"One way you could handle this is to setup a 'Consumables' inventory account - make it a P&L account so the items are expensed when they are received. Then, when the consumables are issued to the requesting department, use the requesting department expense account as the Inventory Offset account. This way, the costs of the consumables would be charged out to the correct department and anything left in that account at period-end could be considered general consumables expense." by Frank Hamelly
I am quoting Frank in this specific issue for the third time maybe this year only !
Allow me to explain the above by showing a simple example:
In summary, let me revise your questions as follows:
Let us know if you have any further concerns,
I would like to confirm 4 things,
1.If I use IV adjustment to issue.Do I put the cost price or I put 0 price.
2.If I put 0 price,do I need to post the batch to GL.
3.During issuing,I suppose its negative adjustment.
4.On this transaction I have two accounts i.e. Inventory acc and marketing expenses acc (Inventory offset account),now my question is,is marketing expenses a p&l (income or expense) component here?.
RomRyan
I too worked on Frank's suggestion before. AlSaadi reply seems simple in this case.
You can use the Inventory Adjustment Transaction to issue the quantity out of stock and charge it to a specific marketing account, if you choose to. Also, the use of a Reason Code in the transaction, mapped to your marketing expense account, would provide reporting capability on the quantity and cost of 'free' products being issued to marketing.
Hello Romryan
Check this out How to Post SOP Invoice with No Cost and No Price
Your feedback is highly appreciated,
Create an inventory item in GP and set the cost valuation method as FIFO Periodic (Standard Costing). Set the standard cost as 0. Set the accounts for Purchase Price Variance (PPV) to an account that you would like to expenses off upon purchasing of the inventory. During receiving of the item, the system will Debit the PPV. When you perform a stock adjustment or sales (with both 0 price and cost), there will not be any GL transactions created. That will allow you to track the inventory but yet do not have any affect to the accounting. Hope this will help.
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