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Last modified on 10/6/2015 8:03 PM by User.

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In-House Use - Account for Cost

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