Common use cases:
1.waste
2.shrink
3.store use
4.Prebuilt Kits
Its not uncommon for stores to have waste, shrink or store use (store used) items they need to take out of stock. "Store use" items sometimes get consumed, or added to other products like gift baskets or Prebuilt Kits.
To account for items coming out of inventory create customer(s) called STOREUSED, WASTE, SHRINK, PREBUILT, etc. -you may want one for each use case.
Set their Trade Discount to -1. This will cause Acme to set all transaction (selling) prices to 0.00.
Note:
Periodically use the >Transactions >Customer and Cost report in the Acme Data Miner to analyze the transactions.
In most cases (except prebuilt kits) you would transfer the cost of goods sold from COGS to an appropriate expense account, in your accounting system. With prebuilt kits the components come out of stock and the finished good should come into stock, so no journal entry would be needed.
Vendors need special handling. When you create the PO in Acme, make it for the new stock and full cost. To remove the items from inventory, sell them to the VENDOR customer. The sale amount will be 0.00, the items will come out of inventory at cost.
When you create the AP invoice in accounting enter the discount for the returned items. Since they have already come out of stock, use a non-stock inventory item (or discount line) for this. Do not use an inventory item and a negative qty. The non-stock item (or discount line) would typically reduce the COGS account that the "sale" would have posted to.
Please consult your bookkeeper or accountant for your specific purpose.
In some states you may need to pay USE TAX on store use items. The report mentioned above is helpful for that too.
See Prebuilt Kit for items taken out stock to go into kits you are going to pre-build.
