This document explains how to account for consuming inventory in-house and how to get the cost into the separate departments.
Below are examples of “in house use” items and G/L account #’s.
If using specialized G/L prefix in the A/R Interface parameter files:
Item 4670.1 BOND 20LB PAPER 8.5X11 has a cost of $32.60
121-46-xx Inventory
400-46-xx Sales
420-46-xx COS/Mtl Media
Item 4905950A TONER, BLACK HP4700 has a cost of $390.00
121-49-xx Inv Equipment & Supplies
400-49-xx sales Equipment & Supplies
420-49-xx COS/Equipment & Supplies
Item 1900 BW COPIES 8.5X11 has no cost
121-19-xx Inv Small Format B & W
400-19-xx sales Small Format B & W
420-19-xx COS Small Format B & W
Item #1900 BW COPIES 8.5X11 is sold to customers with a zero cost. Therefore, the sales show up in G/L #400-19-xx with no associated Cost of Goods Sold in 420-19-xx. Some of the cost is when the paper and toner are consumed by the Small Format B & W department.
If using traditional Siamese accounts:
Item OCE-8.5X11 20# BOND has a cost of $32.60
121-00-xx Inv - Paper
521-00-xx Sales – Paper
621-00-xx COGS- Paper
Item 700-TONER, BLACK HP4700 has a cost of $390.00
122-00-xx Inv - Supplies
522-00-xx Sales – Supplies
622-00-xx COGS – Supplies
Item 110-BW COPIES 8.5X11 has no cost
123-00-xx Inv – Small Format B & W
523-00-xx Sales – Small Format B & W
623-00-xx COGS – Small Format B & W
Item #110-BW COPIES 8.5X11 is sold to customers with a zero cost. Therefore, the sales show up in G/L #523-00-xx with no associated Cost of Goods Sold in 623-00-xx. Some of the cost comes from when the paper and toner are consumed by the Small Format B & W department.
Below is an example list of the customer #’s for “In-House Use”.
00105 SERVICE DEPARTMENT
00106 FM ON SITE SERVICE
00150 DIAZO DEPARTMENT
00151 SMALL COLOR DEPARTMENT
00152 LARGE COLOR DEPARTMENT
00153 PHOTOGRAPHIC B&W
00155 SMALL B & W DEPARTMENT
00156 LARGE B & W DEPARTMENT
00157 OFFSET DEPT.
00158 BINDERY DEPT.
00159 TABS DEPT.
00160 MOUNTING/LAMINATING
00164 SCANNING DEPT.
00196 DELIVERY DEPT.
00197 SALES DEPT.
00198 ADMINISTRATIVE
NOTE: These customers need to be setup in Account Receivable (Module 2), Customer Master (Task 17). Field #13 Price Type: should be all zeros so anything invoiced in Order Entry will have a zero selling price.
IN-HOUSE USE:
The Invoice:
Go to:
· Order Processing (Module 6)
o Order Entry & Editing (Task 1)
§ Enter New/Change Existing Order (Sub-task 1)
For an example, in Order Entry an “in house use” order is invoiced to customer 155 (Small B & W Department), for the inventory items consumed. For this example, let’s assume the item used was: Item 4670.1 (BOND 20LB PAPER 8.5X11) or Item OCE-8.5X11 20# BOND, each having a cost of $32.60
- This invoice has no selling price, as the customer has all zeros in field 13 on the Customer Master, so it is a zero invoice.
- The invoice picks up a cost of $32.60 from the item.
· The invoice takes the quantity out of the Warehouse Master.
· The invoice is posted.
o If using specialized G/L prefix in the A/R Interface parameter files, when it is on the A/R to G/L interface, the effect on the G/L is:
Debit to 420-46-02 COS/Mtl Media $32.60
Credit to 121-46-xx Inventory $32.60
o If using traditional Siamese accounts, when it is on the A/R to G/L interface, the effect on the G/L is:
Debit to 621-00-xx COGS- Paper $32.60
Credit to 121-00-xx Inv – Paper $32.60
Getting the Cost into the Small B & W Department:
Go into Order Processing (Module 6) and print a report:
If the inventory consumed by these in-house customers have only one G/L account #:
· A report may be printed for customers 105 through 198 for the date needed, with NO DETAIL. A report that may be used in the Order Processing module is Customer / Item / Date (IHSCUS). This report lists each customer on a separate line.
o Using the example, this report will display customer 155, cost of $32.60.
o A manual journal entry can be made in the General ledger module.
§ If using specialized G/L prefix
Debit 420-19-xx COS/Mtl Small Form B&W $32.60
Credit 420-46-xx COS/Mtl Media $32.60
§ If using traditional Siamese accounts
Debit 623-00-xx COGS- Small Form B&W $32.60
Credit 621-00-xx COGS – Paper $32.60
If the inventory consumed by these in-house customers has more than one G/L account #:
· A separate report for each customer will need to be printed. This report should be generated for the date needed, for All G/L account numbers, with NO DETAIL. In this case the following Order Processing module report may be used: G/L Sales Account / Date / Item (IHSACT)
· This report will show the sales G/L account numbers. There should be NO sales dollars. The cost column should have the dollar figures.
o If using specialized G/L prefix, and the items on the “in-house use” invoice for customer 155 are Item 4670.1 BOND 20LB PAPER 8.5X11 with a cost of $32.60 and Item 4905950A TONER, BLACK HP4700 with a cost of $390.00
§ This report would show:
Ø 400-46-xx cost column $32.60
Ø 400-49-xx cost column $390.00
§ The manual journal entry in the General ledger module would be:
Debit 420-19-xx COS/Mtl Small Form B&W $422.60
Credit 420-46-xx COS/Mtl Media $32.60
Credit 420-49-xx COS/Mtl Equipment/Supply $390.00
o If using traditional Siamese accounts and the items on the “in-house use” invoice for customer 155 are Item OCE-8.5X11 20# BOND with a cost of $32.60 and Item 700-TONER, BLACK HP4700 with a cost of $390.00
§ This report would show:
Ø 521-00-xx cost column $32.60
Ø 522-00-xx cost column $390.00
§ The manual journal entry in the General ledger module would be:
Debit 623-00-xx COGS - Small Form B&W $422.60
Credit 621-00-xx COGS - Paper $32.60
Credit 622-00-xx COGS – Supplies $390.00