I struggle a bit here. If someone can guide me to the best process, I would appreciate this.
We have a small service/repair operation in one company. The key spareparts are set up in the inventory ledger as per normal.
Now when a service work is performed, certain spare parets may be used in that service order.
As I can see, there are two way to 'deduct inventory":
- By “Production Order”
- By “Inventory Write-Off”
In the first case, the “spare part inventory” is assume to go into an “assembly”, which then is a new inventory item. There seems to be no way using “Production Order” to book these against an Expense Account.
So I guess, the best way would be to use “Inventory Write Off” aand book this againste an expense (or direct cost" account for example called “Service Consumables”. This basically works, however it is not very easy to track this as you cannot “View” a “Inventory Write off” entry, thus you cannot see the totaal cost for the various spareparts used in one transaction. Also, when looking into the “Service Consumables” account, the “Describtion Field” is tken from the “main subject” of the “Inventory Write Off”, there is no way here to see what spare parts were used…
I feel like I’m missing something obvious… Can someone help clarify…
For Example, a good solution would be if there was a “Service Order” transaction, similar to the “Production order” but with the difference that bill of material items are not booked against a compond inventory item but rather against a service order, which may be booked as an expense (if under warranty or similar contract) or direct cost (if the service is charged directly to the customer)