On Sun, 4 Aug 2002 17:15, [EMAIL PROTECTED] wrote: > I will try to make the issue of company expenses and company inventory a > bit clearer. > Since this is an accounting issue it is not strange a lot of people have > trouble seeing the finer points. > > Decision Flowchart: > > I buy physical goods > is this for sales purposes? > YES > use partnumber, Wharehouse Inventory, use inventory stock in > wharehouse > (later sales : COGS, move from wharehouse) > NO > If material expense (computer, car): post from invoice or > bankstatement straight to > appropriate General Ledger in the Balance Sheet section. Unless > you want to liquidate or somebody > offers twice the bookvalue those items are normally not sold. > Do NOT use partnumber unless you want to, use depreciation as > mentioned before via spreadsheet > If small amount (loose chair, pens pencils and the like) : post > to P/L (profit and loss)
I'm still confused. I've gone to Kansas, added a vendor, SmithBroughton. On my desk I have incoice with SmithBroughton's number 34801. I purchased at auction these items, and paid for them: 1 Total Perhipherals Tower c/w monitor, CDROM and keyboard. $125.00 1 Lexmark Laser Printer $125.00 2 Cofee tables and timber cupboard $5.00 1 2-door timber bookcase $40 2 swivel office chairs $60 2 swivel office chairs %60 1 whiteboard These goods are to be used as follows: Computer - inventory Lexmark printer - office equipment Coffee tables - office furniture Book case - office furniture 2 swivel chairs - office furniture 2 swivel chairs - inventory (being used at home). 1 Whiteboard - inventory (Mum wants it!). Now, I'm at "Add Vendor Invoice." Add computer - partnumber "comp-100" $125 Click "update." item not on file. I can add that, back soon. Added Printer-100 while I was at it. Okay, now I have two line-items on he invoice. If I try to add the coffee tables the same way, it's going to add them to inventory in the same way. What have I missed? I'm posting this invoice. Done. > I buy services > is this for sales purposes? > YES > I am a middleman and buy 100 hours of consultancy for 100 and sell > for 200 > see above after yes > NO > If material expense (external services to say customize SQL at > huge rates, lawyer fees that have effects > on more than one future year, mining rights etc) see above > 'material' > If small amaount (one year support contract for SQL etc) : post > to P/L > > BTW: the official term for putting items on the Balance Sheet (i.s.o. > P/L) is "activate". > The only difference with a straight P/L posting is, that when activated, > costs are spread over a number of years via depreciation. There is a > similar bookkeeping 'trick' to spread earnings over more than one year. > > Hth, > Paul > > > -----Original Message----- > From: [EMAIL PROTECTED] > [mailto:[EMAIL PROTECTED]] On Behalf Of > John Summerfield > Sent: zondag 4 augustus 2002 9:37 > To: [EMAIL PROTECTED] > Subject: Re: [SL] How do I record assets? > > On Sat, 3 Aug 2002 23:21, Steve Doerr wrote: > > I set one of these up on the KC demo under vendor Foo Enterprises, > > invoice 45898 posted 08/03/02 and added a journal entry to record one > > month's amort. expense for the table (straight line, 5yr life, no > > salvage value - 1,665/60 = 27.75/mth) > > That computer is listed as "inventory." that's fine for goods > you plan to > sell, and it's even appropriate to depreciate it. > > Probably I shouldn't have mentioned depreciation-) It's not an > immediate > concern. Getting my books current so I can get my GST rebate is. > > > > > > > > ------------------------------------------------------- > 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]/ ------------------------------------------------------- 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]/
