Hello everyone.  
 
We built equipment that we will use for a prototype and to take to trade shows.  My question is:  How do I correctly leave this in Finished Goods?  This is fairly urgent, as my Fiscal Year End is 10/31.  
 
This is the process I followed:  SO-E Release SO, Then SO-F Print Invoice.  Next:  WO-I Enter Finished Production (we do this at the time of invoicing, rather than as we go along - thus the entire BOM issues to WIP at this time.)  Normally at this time, I would SO-G Post Invoice and the costs would go from FG to COS.  However I believe we would want these equipment costs to stay in FG.
 
Here is where I am stumped.  At this time, the correct materials have issued according to the BOM and they are now happily in the Finished Goods account where I want them.  If I do not SO-G Post Invoice the Sales Order will stay open until such time as we decide to sell this conveyor or scrap it.  Is that the correct way to handle this?  
 
 

From an accounting aspect, shouldn't the item be listed as an Asset rather than a Finished Good? Finished Goods are supposed to be sold. In that case, I would probably do what lmk223a said, but then make a GL Journal entry to transfer it from FG to the appropriate Asset account.
 
That's my understanding, but I'm not an accountant....

Finished goods should be an asset account; it is just like raw materials in that regard.  We have several asset accounts for inventory- Raws, MFG Accessories, Finished Goods, Demos...  as many as you need!
 
You don't need a Sales Order to make a work order.  Just scroll through the work order number and DBA will assign a number, or give it your own series of numbers for stock work orders.
The work order process in terms of WIP is determeined by the part number being built and how the class code for that part number is set up.  You can build a part whose class totally expenses it, or for an asset, which most A types and F types are,  puts it first into WIP while building and then into FG or Accessory asset account when done.
 
Hope this helps.

WO-A lets one create a work order without a sales order.
 
The BOM process should be the same. We issue materials via WO-G, enter labor WO-F, and enter finished production WO-I, which will put the investment into FG Finished Goods account.
 
You may want to create a category within FG to show this inventory as marketing/demo equipment (that is, if you currently do not have any production of this part number(s).)
 
Or you may want to create an GL Inventory account for Marketing/Demo Equipment, and transfer the investment from saleable finished goods to demo eqpt account by reducing inventory via IN-C adjustment and changing IN-C's default GL expense account to the GL for demo eqpt via GL-P, "OTHER" batch, before posting the GL batch.
 
Linda
Accountant

Cathy's Product class method will work for the time being.
 
However, it will not work if you are going to retain the same part number for when, and if, the equipment goes into production - saleable finished goods inventory.  There is a limit of one product class to one part number.