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

[Jeff V. <jv...@ch...>]

On Thu, 2006-11-09 at 22:12 -0600, Oscar A. Valdez wrote:
> El jue, 09-11-2006 a las 21:49 -0600, Jeff Vian escribi=C3=B3:
> > 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 =
into
> > > electrical and heat energy for sale.
> > >=20
> > > I've looked at the manual's section on Inventory, and it doesn't se=
em
> > > like I can have a fuel inventory and periodically consume it to pro=
duce
> > > energy for immediate sale (can't be inventoried). That would seem l=
ike 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 producti=
on
> > 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 inventor=
y.
> > It can be sold by the unit, similar to service hours, and cannot be
> > stored. Invoicing goes to AR.
>=20
> 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.