Dear All,
I have a doubt
My client orders Printing & Stationery and other small item from various administartive Departments. They use it for internal Purpose.Please tell me how to book the Purchase and consumption both in terms of Quantity & Value.
Regards
Narayan
When you buy these things from external companies and immediately “consume” it - which means you do not keep them on stock as items - you could either buy this as “fixed assets” or just as G/L accounts.
On the other hand if your client is usually selling this stuff and from time to time using some of the items for themselves you have two different options:
Either you just post a “negative adjustment” using the item journal - in this case the costs are being found on the “Inventory Adjm. Account”.
Or you create a new “Business Posting Group” for “Internal Use”. For this you could assign the correct account as “COGS” account you want to post the costs of the internally used items. Then you create a sales invoice where you sell the items used internally to a customer using the “Gen Bus. Posting Group” for Zero amount.
So you are not creating any turnover but you have the costs of the items on the right account.
Dear Thomas,
Thanks for your help
Suppose if i am going to give Negative Adjustment then please tell me the process because i have a doubt how i will book Purchase & Consumption and making cash Payment.
Regards
Narayan
Aehm, when you issue an invoice with a ZERO value, there is no “payment”. So this would be the “most correct” way of doing it.
Anyway when you want to go the negative adjustment way:
Go to warehouse, Item Journal and create a new line with the entry type “Neg. Adjustment”. Enter the quantity and the location code. Check the unit costs and post it.
Dear Thomas,
Please tell me in detail i am not able to understand the solution.
a)Suppose i am using Sales Solution
b) Suppose i am using item journal Solution
Regards
Narayan
Selling items means I sell the items and post the COGS to the defined COGS account and the revenue (which is zero in your case - as you are consuming it yourself) to you sales account.
When you are not selling the items you are posting the costs of the goods to your adjustment account as defined in the posting setup.
Please try both methods in a CRONUS and follow up the postings created.