Internal Usage of Inventory
1. Setup a new GLCODE in Customers & Statements to be used strictly for Internal Usage Sales. Setup as follows: Normal Inventory Account
Sales & Cost of Sales accounts should be the same to create a zero effect.
2. Setup an "Internal Usage" customer master in Customers & Statements.
- price level must be "7"
- tax jurisdiction must be "PST Only"
- cost +% must be "0"
3. Enter a sales order to the Internal Usage customer for the items being used internally and process through as normal.
The net effect in G/L will be as follows: CR. Inventory (the amount of the material)
CR. PST Payable (the amount of the PST)
DR. Accounts Receivable (the total invoice amount)
4. Then once a month (or as often as you wish), enter a cash receipt to clear this invoices.
- at cheque amount, enter 0
- enter payments to the specific invoices
- then distribute the proof amount in the G/L section as follows:
DR. Internal Usage Expense Account (the amount of the material amount)
DR. PST Paid Account (the amount of the PST)