Hi, could some enhancements be made to inventory write-off tab.
When selecting an inventory item to write-off could the description and cost also be included?
Also…
on the allocation (expence account) that the items are booked out to, when clicked on from Summery tab it only shows the general description from the write-off and the amount, please could i also see the item code (part number) and the item description?
One last thing…
If i were to write-off an item before the date i bought the item the amount shows as 0.00 in the write-off expence account, would it be possible to have a cost ajustment when buling the item?
I do this as i like to keep all the items on one write-off date for a particular vehicle.
(It would also be nice to have a report showing the total write-off cost per date/vehicle to keep track of costs)
On the Summery tab the net profit is the correct amount but the amount doesn’t appear to be in the write-off expence account so im not sure where it goes?
The cost of write-off is dynamically calculated. It’s based on what date you are doing write-off and it’s still subject to change in case you retrospectively make some adjustments to previous transactions which could affect the cost as of write-off date.
I agree that general ledger will need to be improved to show these sub-accounts where applicable for more clarity. But it’s not as simple. There are some edge-cases I need to nail first as this is not just about inventory write-offs but pretty much about every transaction in subsidiary ledgers.
My view is that write-off must be performed only on items you actually have. Not on items you are planning to purchase in future. Now, Manager can handle negative inventory just fine so this is technically not an issue. But what’s happening is that your write-off cost is then debited to Purchases of inventory items account rather than to your write-off account. This would explain why your net profit is correct (amount is simply posted to different expense account)
How do you exactly use inventory items again? Do you create inventory items for each vehicle you own? What about spare parts? Why do you use write-offs? How do you record repairs when spare parts are used to repair a vehicle?
Thank you.
I understand now that write-off cost is dynamically calculated.
Could the description be added?
When I buy a motorcycle I create a new inventory item for that bike using the registration number for item code, and enter cost,sale and description.
You did say maybe I should be using fixed asset but found using inventory items easier for selling/invoicing the bike.
When I sell the bike it goes through the workshop and uses parts out of inventory like oil, filters, plugs etc.
I use inventory write-off to adjust stock level and assign them to expense account “Internal parts”
Sometimes I will need to order other parts (that I may not have in stock) and would like to write them off in the original write-off list so I have one list of parts used on that bike.
It would be nice to have a report showing cost of bike and all parts used to show net profit/loss of the bike.
You shouldn’t be doing write-offs. Instead, when using inventory items to “improve” another inventory item, you should use Manufacturing orders tab. The problem is that right now you can’t make manufacturing orders to consume spare parts and produce zero quantity of output item (e.g. bike).
But I think I should support this. This way the cost of consumed inventory items (e.g. oil, filters, plugs) would be transferred to the bike. When bike is sold, you will know profit margin.
Write-offs should be used only if you lose or damage some inventory.
Yes, I now understand that write-offs should only be used if inventory is lost or damaged.
It was the only way I could think of how to book parts out internally.
I will go back and correct my mistakes when this is supported in Manufacturing Orders.
I would think this would be needed for all businesses in the automotive industry.
On another note, when I service a customers bike I use cleaning fluids, greases and lubricants and have an income sales account “Sundries” and charge to this account.
These sundres I have also been writing off so is this also incorrect?
It would be difficult for me to invoice out each part of sundries as they are a tiny fraction of each pot/tin this is why I have been using the general income sundries account and writing off the tin/tub when another is needed.
Sundries can be- chain lube, white grease, copper grease, brake cleaner.
All these are in inventory as customers that maintain their own bike purchase these from me.
The only thing I can see with this is that the bike may go into the workshop before its sold and may be sitting for a month (or 3!) before its sold so I really need to book the parts out to the bike immediately or it will show parts in stock that have actually been used.
Hope you can understand this?!
Those you can just write-off into some expense account.
It’s basically getting to the point where manufacturing orders and inventory write-offs are almost the same thing. The only difference is that manufacturing order converts input item value into another inventory item while inventory write-offs transfer value to some expense account.
It’s possible in future, both concepts will be somehow merged into one.
I used expence account “Workshop consumables” when writing off lubes and greases, i will continue to do this.
The manufacturing order is a much better way to see all parts used on that bike and you can also see what profit/loss in the reports.
Very pleased.
(In the Inventory item reports it would be nice to have a per inventory item profit margin report.
It looks like from other posts that you are looking to implement a customizable report which may hopfully cover this)
