Many accounting software are focused on having a solid system for the accounting of inventory items used for producing final goods or sold directly, but there are other items which may be inventoried depending on the financial policy of the organisation, this includes stationery, spare parts, office consumables (biscuits, soft drinks etc.) and cleaning supplies. Some firms keep them as current asset and expense when the items are issued or consumed
I have hardly come across any system/software that has a dedicated module or function for the acquisition and issuing of this type of inventory.
In practice these items are same as merchandise inventory but the difference is that merchandised inventory is issued to production (direct cost) whiles stationery etc. are issued for used by the organisation but not traceable to finished goods.
I am therefore requesting for the inclusion of a module called ‘supplies’ which will record the inflow and outflow of supplies telling the user the balances of stock items in the module’s reports.
It would be necessary for the module to have the option of choosing what expense ledger/account to issue the items into. So for items like A4 papers, printer cartridges, pens, envelopes, and staple pins, we can issue them into the printing and Stationery ledger/account. The account to issue an item into may also be preselected in the item creation page.
Spare parts of machines can be issued to ‘Machinery Maintenance’ Expense Account if they are not going to be capitalised. Inventory items which are used in production but not directly traceable and therefor can’t be correctly used in costing items for manufacturing orders and inventory kits can be issued to a direct expense account, e.g. plastic moulds which are used in concrete product can be issued straight to a direct expense account.
During purchases we will select ‘Supplies on hand’ instead of 'Inventory on hand’.
On the issuing page we must have ‘issued to’ to record the person receiving the items and ‘Department’ to record the receiving department.
This will be a great tool for the officer in charge of supplies and logistics, it will also enhance accuracy in financial reporting, and mean another milestone for Manager.io