Hi,
Please I need help on how to handle inventory items that are not meant for production or sales. We are into production and we buy some items that we use for repairs and office use such as stationaries. These items are bought and kept as inventories but not actually used for production or for sales. We maintain stock card for them just like any inventory.
So please how do I handle such items in Manager?
Thanks so much.
Inventory items are usually goods which are held for sale or production.
If you have to account for them as inventory items then you use inventory write offs to account for their consumption
A lots of businesses do not bother accounting for such stocks and record them as an expense when they are purchased.
Create a separate location for stationery items. This will enable you to better track the items.
Create a control account made up of inventory items and put all the stationery items under it for reporting purposes.
Code them differently to help you easily search for stationery items in reports and in the inventory tab.
Simplify things. For example, I wouldn’t create an A4 sheet rim as an item. I would rather create a box of A4 rims an item.
Yes, and create an expense account for the write offs.
Thanks to everyone that responded. Your responses are great. I will use inventory write off. I didn’t think of it.