Non-Inventory Items

[kobus_Jhg]

I have 2 types of Non-Inventory Items.

The first is Floorplans where I put Evacuation Routes and the location of Fire Equipment on a map. I have no problem here, because I can allocate the money to Sales and expense it to Printing Costs.

I am also Developing Software. The final Software Product has no cost. Where do I allocate the final product:? Sales and ??

I am using this method to create the Non-Inventory items: -

Settings

Non-Inventory Items.

New Non-Inventory Item

and I fill it out like this: -

[Joe91]

There is no expense involved

[kobus_Jhg]

yes I no, but Manager puts it automatically under suspense account.

[Joe91]

what do you mean?

[kobus_Jhg]

let me post a image

[Joe91]

i think that’s ok - after all, you will not be purchasing this non-Inventory item

[kobus_Jhg]

True, but the suspense account still need to be cleared in the end of the month. The software is costing me nothing

[kobus_Jhg]

Thank you @Joe91for your assistance. I just came right. It is showing on the BS now as retained earnings and the profit/loss statement shows no expenses

[mam970]

I agree with you, I faced the same issue when I tried to do a journal entry

[Joe91]

You need to change Suspense account to a proper account

[mam970]

The Suspense account should be something related to the purchase of a Non-Inventory Item, which does not make sense for services.

[Joe91]

Your journal entry makes no sense

Your are recording an income (Rental Income CR) and debiting the suspense account - that is not correct

Either the Rental income is paid in cash, in which case you debit a bank or cash account or it is owed by someone in which case you debit an account receivable account

[kobus_Jhg]

@joe, @mam970 In my case it seems the suspense account is only a place holder. If I do the transaction it looks ok

Invoice

Balance Sheet

Profit/Loss Statement

Non-Inventory Item