Good evening
Is there a function to issue and receive stock to and from an expense account and department or cost centre?
This is not a purchase, production or sale, its purely stock journals.
Instead of telling what it is not, please tell what it is?
Its a direct stock issue or stock receipt
Please explain what is that?
Ok
Example: i have 10 bearings in stock. 1 bearing is used to repair a machine in the production line. How do I remove the bearing from stock and record it as an expense?
You can use a internal shipment to move the bearing to a lost found location (you can create an specific one called Machine Reparing) to remove it from the stock.
Sounds complicated. Same process is required for withdrawals for production: You can sell a product from stock, or you can use the same product in a BOM, e.g. for a production order. Once the production order is confirmed the BOM item is backflushed, and the internal value of the part is posted to the production order (ideally).
Does that make sense?
Its not a BOM, or selling. Its purely issuing items from stock and update expense accounts e.g. equipment maintenance, administration etc.
Its also not moving it between locations. Its a write-off of stock.
Well understood, I just tried to make an example with a similar requirement
So you just need to move the stock using the Internal Shipment.
If you have some of the account_stock_* modules the value of the the item will be deducted from accounting.
1 Like
This is not enough, the account_stock_* modules are only to perform perpetual inventory accounting.
Usually goods purchased are booked in an specific expense account because its purpose is to be sold. But if the company is using it for other purpose, the expense account should be changed.
Indeed I think this will need a new module to manage maintenance and repair of production tools.
1 Like
It is used for various purposes, to practically issue any stock item to an expense.
It will be great if you can give at least more details of one of this purposes.
I think we need a new document quite similar to production but it will take as input a goods and can output an assets.
So at the stock level, the goods will be moved out to a kind of production location and the assets will be bring in to a storage location (or a production location if consumed directly).
On the accounting level, the expense account of the goods must be credited by the current cost price and the expense account of the assets must be debited by the same value.
I’m wondering if taxes could be involved in such case?
Once we have converted the goods as assets, it can be summed by internal shipment to a production location. And if it is a depreciable asset, we can create the account asset for the depreciation but we must allow to use this new document instead of a supplier invoice line.
Good day
Let me use an example to explain the scenario:
Setups
-
Company e.g. Grain Milling South Africa
-
Location e.g. Mechanical Engineering Spares
-
Product e.g. Roller Bearing SKF 15x25x45
-
General ledger account for stock e.g. Stock: Engineering
-
General ledger account for expense e.g. Machine maintenance expenses
Order the bearing from the supplier using a purchase transaction. e.g. order 5 x bearings from supplier Bearing Man for ZAR100 each
Upon arrival the bearings are received into stock in the location mentioned.
Accounting entries: Debit Stock ZAR2500 Credit Purchase acruals ZAR2500
The invoice will be entered later.
No the product is in stock.
When a repair to a machine is required, the following scenario is required:
Issue 1 bearing from stock as an expense
The remaining stock is now 4.
The accounting entries are:
Credit stock: ZAR500 Debit Machine maintenance expenses ZAR500.
I hope this make sense.
I fogot to add, the opposite can also happen, as stock can be received in the same way in cases.
So it is a goods that is purchased and not an assets as they must enter in the stock accounting (only goods do that).
This is about transforming one goods into an asset as described on
General maintenance work on assets is not creating an asset, its purely an expense. The process can be used for various other reasons example:
- Write off expired stock
- Use stock for marketing campaigns or trade shows
- Issue fuel from stock for distribution expenses
I do not agree. It is an asset that is deprecated directly (at least in the Tryton terms which has two kind of assets).
Goods that are trashed are already expenses since they have been purchased.
This is again a conversion from stocked goods to assets.