Inventory kits - expense account

1

Hello,

How can i assign an expense account to inventory kits?
I can assign an income account but not expense account.

regards

2

Hello
There’s no manual assignment expense to inventory kits.
In case of creating sales invoice to inventory kits inventory on hand transferred to cost of goods sold automatically.

3

I think you would assign the expense account in the underlying inventory items, and the COGS would be posted to those accounts when the kit is sold.

4

even though if you assign the inventory items to a specific expense account, when you make a sales invoice for inventory kits the expense account would be inventory - cost, not the assigned expense account.

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5

You’re right I tested this, and single inventory items go to their selected expense account, but when sold in a kit, they go to the built-in ‘Inventory - Cost’ account? I wouldn’t think this would be intended. I wonder of this is a bug? @Ealfardan

6

That’s by design.

7

Hmm, that seems a little odd to me, as it prevents consistent reporting (if I sell door handle directly, it can be “Hardware COGS” but if I sell it with the door, it can only go to 'Inventory - Cost), this doesn’t seem to make sense to me from an accounting perspective. I think it should either use the expense account assigned to the underlying inventory item, allow custom expense account for inventory kits, or (preferably, though I know more difficult) both.

8

I know from my perspective, I would not use Inventory Kits because of this, as I usually find the built-in accounts useful for only very small, very simple businesses.