Re: [SL] Accounting for fuel inventory in a small power generator

[Oscar A. V. <ov...@en...>]

El jue, 09-11-2006 a las 21:49 -0600, Jeff Vian escribi=F3:
> On Thu, 2006-11-09 at 09:00 -0600, Oscar A. Valdez wrote:
> > We are a small power generator that purchases fuel and converts it in=
to
> > electrical and heat energy for sale.
> >=20
> > I've looked at the manual's section on Inventory, and it doesn't seem
> > like I can have a fuel inventory and periodically consume it to produ=
ce
> > energy for immediate sale (can't be inventoried). That would seem lik=
e a
> > Job Costing or WIP functionality that doesn't seem to be there in
> > SQL-Ledger.
> >=20
> > Am I wrong?
> >=20
> Just a thought from a layman. IANAA
>=20
> Fuel used in operations is an expense item.  You may buy it, and have
> some quantity on hand, but it is consumed as overhead in the production
> of energy.  It should not be treated as inventory for this purpose.
>=20
> Energy can be treated as a service, since it is not tangible inventory.
> It can be sold by the unit, similar to service hours, and cannot be
> stored. Invoicing goes to AR.

But what we do is transform fuel into electricity and heat. It's an
industrial transformation. So fuel is our raw material, and electricity
and heat our end products.
--=20
Oscar A. Valdez
Energ=EDa Borealis Ltda. de C.V.