Purchasing material of production

I’m running embroidery and printing business. Now that i bought many type of threads for the use of embroidery item and also i bought paints and inks for the use of clothes printing, my question is where should i put those expenses in manager? And how about the small part i.e brushes that i bought to produce clothes printing.

Sometimes customer send me their own clothes and i only do embroidery. Is that included in inventory or non-inventory sales? Pls clarify

Thanks for the helps.

I suggest for the products you buy for making or preparing will be raw material and will go in inventory. keep updating inventory as used and purchased.

for the case of customer’s cloth and you do only embroidery you can create an inventory as “Embroidery Service” and add the tax attached to it. then prepare invoice by adding this service.

I hope this helps.

If you are able to clearly identify the units of usage then you could use Inventory items but I suspect that is going to be to difficult to manage e.g. a reel of thread (say red and 200m) that could be used a multiple number of times before the reel is used up. So unless you (1) recorded the Inventory Item quantity as meters and (2) know how many meters were used each time - Inventory management could be nightmarish. The same illustration would also apply to both paints & Inks.

Therefore the simplest solution for you would be to expense the materials as they are purchased to the P&L. You could create a P&L section called Production Materials with a separate account for each of the items Threads, Paints, Inks as well as one for Tools

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For the Embroidery only service it would be non-inventory sales which could setup under Setting >> Non-inventory items if you had set pricing.

This you cannot do, because inventory includes only goods held for sale or production. Frequently performed services can be created, as @Brucanna wrote, as non-inventory items.