I have created an inventory kit on a product I am manufacturing. This kit is packaged as a box of 24 pieces of the product that I intend to sell as a standard offering.
There might be small cash transactions during the course of the business where in I might sell these products in loose batches of 5 or 6 daily depending on our sales and neighboring customers requirements.
My question is, is there a way I can differentiate this in my P&L to identify how much has been sold as boxes to our standard customers and how much has been sold as loose transactions. Meaning to ask is it currently possible for the system to show the packaged sales as an entry under Sales in P&L and loose transactions to show under Inventory- sales in the P&L.
Yes, by the use of the Custom Income & Expenses accounts assigned to an Inventory Item.
If you only want to track the sales separately, then create a P&L Income account called “Boxed Sales” and then tick the Custom Income Account with in the Boxed Inventory Item and allocate that P&L account there.
But another question is, should you be using Inventory Kits or Production Orders ?
If you are creating the Box on demand, as the Customer asks then Inventory Kits is ok.
But if you are creating inventory for the shelf, for later sale, then Production Orders would be better.
Production order happens with a combination of materials to make a final product. This quantity reflects in my inventory and is constantly updated with the more production orders I run. I then used the inventory kit to automatically deduct the number of pieces by assigning a fixed value to each box. That way in my sales order , I select 3 boxes in the qty for the customer to know and the qty of 24*3 is automatically deducted from my inventory.
If I follow the above process, I still seem to have Sales under my P&L present with no values to it. All my sales recorded is reflected under Inventory- sales.
A Sales Order doesn’t update the P&L, Sales Invoices do, unless you meant Sales Invoices.
You can’t get a separate sales value the inventory kit way because you are selling 24 inventory items but for a kit price - the kit is a grouping of items rather than being an individual Inventory Item itself.
I would be using production orders twice, once to combine the materials to make the final product and once to combine 24 final products into a Boxed Inventory Item.
This way the Boxed product is a stand alone inventory item which can then have the Custom Income Account assigned to it.
