Hi Barry. Barry Hembree wrote:
>I have a violin making business. > Does it bother you that people from Nashville call 'em "fiddles"? ;-) >I make instruments and bows and also >purchase used instruments for resale. Most of my questions have to do >with documenting inventory and cost-of-goods-sold. > >Questions > >#1. Re-selling used instruments seems pretty straight forward. I have >set up inventory accounts for each type of instrument and when I >purchase an instrument for resale I just enter it into inventory with a >vendor invoice and use a unique item number. The COGS is just the price >I paid for it. One question I have is that often I put quite a bit of >work into the item to get it ready for resale. For example, with a bow I >may re-hair it, put a new tip or new grip on it, etc. These are all >services that i would normally charge a customer for. How do I account >for this in sql-ledger and get it to roll-up in the COGS for that >particular item? > You're talking about assemblies. You can set up an inventory item like 'refurbishable instruments' that you put them in when bought at cost. Also add a direct labor service like 'restoration labor'. Add them to an assembly like 'Restored Instruments'. It will cost both pieces into the assembly. Just click Update Form after entering each line that you want to include. > >#2. I not quite sure what to do with items that I make. I can enter an >item into inventory with a vendor invoice with me as the vendor again >giving each item a unique product number. What price do I charge? I >guess several options are: zero, sales prices, my best guess as to what >materials I have in it. > Same concept as above but I would use unique inventory accts for raw materials like 'raw mat - wood', raw mat-bow hair', etc. and a direct labor service like 'Manufacturing labor'. Whatever detail you need to manage by. > >#3. This is related to the last question. I stock a number of raw >materials and finished items for making and repairing instruments. How >do i handle this? For instance, let's say that I am making a bow. I will >need some wood for the stick, wood for the frog, silver fittings, a tip >and hair. Is there a way in sql-ledger to remove those items from >inventory and assign them to the bow I am making and have that show up >as the COGS when I enter the finished product into inventory? > All part of Assemblies. I set up an example at the KC demo, http://accounting.dyndns.org/cgi-bin/sql-ledger/login.pl called '105chicken-plucked'. See the Goods and Services, or Inventory reports. One part chicken and the service of one hour of Hard Labour, and you have the assembly plucked chicken in inventory at cost. I hope that demonstrates the idea. > >#4 Finally, when I enter a vendor's invoice, everything has to be an >inventory item. Quite often I will get invoices that have some inventory >items and some items that are just general supplies (like glue or >sandpaper, etc.). What is the best way to enter these invoices? > Actually, the two you mention are costable, but if it's not a large enough expense to bother with, you can do an AP->Add Transaction using the same invoice number for the stuff you don't want in inventory. It's two transactions, but they show up together in the AP Transactions reports with the same invoice number. Good luck, Steve > > >Thanks in advance for your help and thanks to Dieter for a very nice >piece of software. > >Barry > > > > >------------------------------------------------------- >This sf.net email is sponsored by:ThinkGeek >Welcome to geek heaven. >http://thinkgeek.com/sf >------------------------------------------------------- >(un)subscribe: http://lists.sourceforge.net/lists/listinfo/sql-ledger-users >Archive: http://www.mail-archive.com/[email protected]/ > > > ------------------------------------------------------- This sf.net email is sponsored by:ThinkGeek Welcome to geek heaven. http://thinkgeek.com/sf ------------------------------------------------------- (un)subscribe: http://lists.sourceforge.net/lists/listinfo/sql-ledger-users Archive: http://www.mail-archive.com/[email protected]/
