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Charging Inventory to expense

krvenkatakrvenkata Member Posts: 154
Hi

We have a peculiar scenario in one of our implementation for a supermarket. The Shopping bags are purchased thru purchase module and stored in the central warehouse. These items have seperate Inventory account (Inventory - Consumables).

From the warehouse, it is transferred to all supermarkets. Till now the inventory is tracked for these items.

These items are not sold and is more used as bag for taking out the retail items. Now the client wants to transfer the inventory value as showroom expense. Now how can i handle this scenario..I dont want to directly credit the inventory -Consumables account (against the store code which is global dimension1) and debit the showroom expense code. This will affect my future reconciliation between item quantity and value.

Has anyone came across this scenario before and how it was handled? Any suggestions

Thanks

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    rhpntrhpnt Member Posts: 688
    krvenkata wrote:
    These items have seperate Inventory account (Inventory - Consumables).

    What do you mean by "Inventory account"?
    krvenkata wrote:
    From the warehouse, it is transferred to all supermarkets. Till now the inventory is tracked for these items.These items are not sold and is more used as bag for taking out the retail items.

    Do you mean that only the transferred qty is tracked and the items are not even "shipped"? If so, you have to handle that with the item journal.
    krvenkata wrote:
    Now the client wants to transfer the inventory value as showroom expense.

    Unless you're not a bookkeeping clerk leave the posting of expenses to them. They should know how to handle that with the general journal. If the requirement is such that it should be done "automatically" then appropriate posting groups have to be set up and the bags have to be shipped and sold with every customer purchase (Price=0); optionally you modify the printout so they are not visible on the bill.
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