A Miscellaneous part number can be used in place of product
numbers not setup.
The Miscellaneous Part is entered using Add
Sales Parts. Use the following setup:
PRODUCT # P DESCRIPTION MISC PART (this description will be typed over with the actual part# and part description when the Miscellaneous Part is used in Work Orders service) PRODUCT CLASS 999 (see below for explanation) VENDOR # 1 Unknown vendor SERIAL # N AVG COST EACH 0.00 COST TYPE + ZERO COST ITEM (this is not a real product) PRICE 0.00 (Operator fills in every time it is sold) INVENTORY N (This is not a real product & it should not appear on inventory lists or value reports) LOCATIONS 99999.00 Enter a generous quantity at each location, since the quantity will only ever decrease with each sale or repair.
Set up one Product Class for the Miscellaneous Part in Sales Product Classes:
Product Class Description ------------- ----------- 999 MISC PART
In Sales Product Classes the General Ledger Accounts selected would be:
G/L Acct Account Description -------- ------------------- COST OF GOODS SOLD 4810 REPAIRS & MAINTENANCE EXPENSE REVENUE ACCOUNT 4195 PARTS SALES INVENTORY ACCOUNT 4810 REPAIRS & MAINTENANCE EXPENSE
The General Ledger posting of the Miscellaneous Part is
controlled by the G/L Account numbers assigned to the Product
Class.
The posting uses these accounts numbers automatically when Work
Order Invoices or Internal Repairs are posted during the Daily
Close process.
The Cost of Goods Sold and the Inventory Account should be set to
the same G/L Account, since the miscellaneous parts are expensed as
soon as they are purchased.
EXAMPLE: MISC PART: Filter SELLING PRICE: $10.00 COST: $ 6.00
MISC PARTS PURCHASES:
When a part is purchased in Accounts Payable, no Warehouse
Receiving or Item Receiving is required for the part.
Instead, the operator can manually select the Repairs &
Maintenance Expense account.
This results in immediate expensing of all repair parts.
The G/L posting would be:
Accounts Payable is CREDITED Acct# 2000 for $ 6.00
Repairs & Maintenance is DEBITED Acct# 4810 for $ 6.00
MISC PARTS SALES for ZERO COST ITEMS:
When using Work Orders PARTS DETAILS can
be entered. At the Product # prompt, enter P for MISC PART. At the
Description, over-type MISC PART with the actual part number used
and the real description. At the PRICE EACH, over-type 0.00 with
the correct selling price $10.00.
When the Work Order Invoice is posted, only the Parts Sales
Revenue will be recorded in the General Ledger, since the Misc Part
has been setup as Cost Type + (ZERO COST).
(The cost of the part was already expensed when it was
purchased.)
The Net Profit equals $4.00, which is $10.00 revenue less $6.00
cost.
Parts Sales Revenue is CREDITED Acct# 4195 for $10.00
Accounts Receivable is DEBITED Acct# 1200 for $10.00
INTERNAL REPAIRS AND ADDITIONS USING MISC PARTS:
The Miscellaneous Part can be used for an internal Repair using
Work Orders.
Similarly at the Product # prompt, enter P for MISC PART and at the
Description over-type MISC PART with the actual part number used
and the real description.
With a ‘Zero Cost’ type (+) sales part the Cost Each is
disabled as the product should already have been expensed, and on a
Close Internal Work Order no revenue is
generated from the Price Each as parts would be used at the
"in house" cost.
This means that ‘Zero Cost’ products used in service on an Close Internal Work Order do not capture or post
any cost or repair cost for the Misc. Part used on the rental
product and no impact would result in the General Ledger for the
Misc Part.
If a general Miscellaneous Part is required to represent
multiple products that do have varying costs that should post,
setup another part as a 'Prompt for Cost" type (*) product as
outlined in Sales Inventory.
Then if the operator has role permission, the Cost Each, can
be over-typed from 0.00 with the correct cost $ 6.00.
This would record a $6.00 parts repair cost on your rental
equipment and in the G/L without having the specific part
setup.
Note: On Additions entered through Close
Internal Work Order, costs for the addition update the Fixed
Asset Tag of the product serviced.
If there are no costs, then no costs are reflected as an addition
on the tag.
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