Using inventory to repair inventory

[crazytazz]

Hi

We utilize some of our inventory items to repair other items within our inventory. I now need to take the used items out of our stock but it still needs to reflect in the cost of sales account.

Any advice on how i do this?

[ulbricht]

Hi

Journalise the stock entries, that is, take out stock and contra with the relevant COS a/c

[crazytazz]

Hi

Journalise the stock entries, that is, take out stock and contra with the relevant COS a/c

This would take the figure out of my cost of sales account. i need the amount to stay in the cost of sales account as it is still part of our cost when selling the repaired item.

[Andromeda]

Hi crazytazz, unless your system was setup wrong, the cost is in your inventory account, not your cos. It only is transferred to cos once you sell it. It is after all cost of sales.

[ulbricht]

true, a cost of sales a/c is an expense a/c therefore you journal out stock by crediting stock control a/c and debiting cos a/c.

am guessing you want the repaired item to reflect the additional value of the components used in repairs, some options:

1 - use the bom module to "manufacture" the repaired item

2- manually set the cost of the repaired item to reflect its true value

[crazytazz]

Can i do an inventory journal and take out the item , use the other item's job number as a reference and then set the cost of the unit to zero? Would this not leave the original cost in the purchases account?