why dont inventory writeoff be changed to make bulk write off and distributed to multi projects and from multi stores li
if it is done in multi lines , this can achieve above idea. if possible will be great and handy
Conceptually, this might work. But you are suggesting population of a five-dimensional matrix: item, location, account, project, and division on a single form. The possibility for error in transactions that should be rare hardly seems worth the risk.
The difficulty here is I can only write off for one project ,
If consumption spent /distributed to more projects I have to create another write of for each project or cost center
You may keep the location (store) but at least move on project to item line
As I suspected from the name of the account shown, you are evidently using write-offs to record routine consumption of inventory for ongoing operations. That is not their intended purpose.
Suggest me an other way to record staff consumed from store to different cost centers and projects .
What are you consuming?
Is it necessary to account for this using inventory items rather than direct expensing the purchases as cost
I would say the same thing. Inventory comprises items you hold for sale or production (and subsequent sales). It constitutes assets expected to produce future revenue.
Items consumed on jobs are current expenses. They can be posted directly to expense accounts (and relevant projects) as they are purchased.
i do distribute them on expenses account but cost centers varies as they are burchased in bulk but consumed as per projects requirments
I still would not use writeoffs, which are meant for situations like theft, loss, or spoilage.
@Tut, it would indeed be better to be able to have them recorded as a separate company expense with quantity adjustment such as for example office expense for internal use of copy paper. However, the Manager guides at Manage inventory - Part 3 Conclusion | Manager support the use of write-off for this and states [emphasis added]:
Inventory is sometimes lost, stolen, damaged, or spoiled and no longer available for sale. Or, it may be consumed for internal company purposes, given away for marketing reasons, and so forth. In these situations, the value of inventory must be transferred to an appropriate expense account. Inventory write-offs accomplish such transfers and correct quantity counts.
Use of materials on a job is not internal use. That constitutes direct expenditure for the generation of revenue. Auditors might have serious objections.
I agree now , to be honest we thought write off (in Arabic translated شطب مخزون) we thought it is for recording store deduction balance of store items.
We buy pipes in thousand meters and drilling materials in hundreds of tons. Each job, we consume we record the receipt/consumption of the store item /inventory items on expenses.
If there is better way please refer to.
That is a complex question, and depends on what your final product or service is and both how and to whom it is delivered. It sounds like you may operate in the oil drilling business, an industry so complex you should be getting accounting advice from an accountant qualified in the industry, not from a public software support forum. You might also have to face the possibility Manager is not a suitable platform for your business.
Thanks any way, at the moment I like manager and the best of it your team response and support. We are supporting you as well till all can be done one day if possible.
Now the results of doing the inventory write off is (on expenses account ) is decreasing the inventory balance and increasing the expenses on )
Can we name it differently like (material release order ) for projects
The same way we use inventory to produce products for sale ?
Just a suggestion.