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Evo-ERP and DBA Classic >> Items >> CLASS CODES
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Message started by DJ Yates on 09/19/06 at 06:27:36

Title: CLASS CODES
Post by DJ Yates on 09/19/06 at 06:27:36

WE ARE IN THE PROCESS OF SETTING UP CLASS CODES FOR OUR EXPENSE ITEMS. FOR THE GL ACCTS TO BE SET UP AGAINST THE CLASS CODE, I AM STUCK AS TO WHAT CODE TO USE FOR THE GL SALES-TAX AND GL-SALES NONTAX. THERE ARE 2 DIFFERENT TYPES OF EXPENSES: 1) THE ITEMS ARE PART OF WHAT IS BEING PRODUCED AND 2) THE ITEMS ARE BASICALLY SHOP SUPPLIES. WHAT GL ACCTS SHOULD BE USED FOR THESE EXPENSES? THANKS.

Title: Re: CLASS CODES
Post by Lynn Pantic on 09/19/06 at 06:33:21

The only GL Account that really matters for expense items such as supplies is the first one. They are going to be type N (Non-Inventory) items expensed at the time of receipt and never sold or used in work orders so the other accounts on the Item Class screen do not matter.

Items that are part of what are being produced are NOT expenses. they should be going to the Raw Material Inventory Asset account. The COGS account for components is the account what will be posted to when adjustments are made during physical count and the Sales accounts would be hit if you ever sold a component (as if for a spare part or something)

Title: Re: CLASS CODES
Post by cathyh on 09/19/06 at 07:17:38

We just use our sales accounts for accessories, both taxed and non-taxed, even for parts we will probably never sell. The account will only be used if there is a sale, and they are all set up in case someone does need a spare part, as Lynn suggested.
Some of these parts are expensed when produced, (an expense account as the asset/exp account) and some are inventoried, (an asset account as the asset/exp account) but all have the same COGS account as items we do sell in case they are sold.