Re: [SL] proper way to log a purchase for items for sale

[Myk R. <myk...@gm...>]

You're probably right there :)   Thanks though, I will grab some accounting 
books from the local library to help.

-myk


On Sunday 24 February 2008 10:45:41 pm David J wrote:
> Purchase of trading stock is not an expense until you sell
> it.
> Between purchase and subsequent sale, its an asset.
> This is prolly a question for Accounting 101, rather than
> the SQL-L mailing list.
>
> > Thank you. perhaps i have my accounts configured
> > incorrectly. I only buy parts  when they are needed, so I
> > dont actually keep any inventory on hand. I want  to find
> > the right way to document when I purchase a part for
> > resale, and have  it shown as an expense and not as an
> > assett.. It looks like when I do the  purchase order, the
> > part is being considered an assett for some reason. Does
> > something different happen once that part is paid for by
> > the customer?
> >
> > Thanks,
> > -myk
> >
> > On Sunday 24 February 2008 11:46:56 am Michael Hasse
> >
> > > wrote: Technically one would create a Purchase Order,
> > > then as items are received, (e.g. in the case of a
> > > multi-item order that arrives in separate shipments)
> > > Vendor Invoice(s) are created from the PO. (Vendors will
> > > sometimes create multiple invoices for a single order if
> >
> > items are shipped separately).  Then the invoices are
> >
> > >     Paid. The two key points are are the Receipt of
> > > goods at the PO, which causes them to be placed into
> > > inventory.  If, however, one skips the PO process, then
> > > the goods will not be placed in inventory until the
> >
> > vendor invoice is (completely?) Paid. >
> >
> > > Thanks,
> > >
> > > Michael Hasse
> > > Itwerx
> > > 206-850-1496
> > > http://www.itwerx.net/
> > >
> > > **********************************
> > > If our service is not 100% satisfactory please tell us!
> > > If it is 100% please tell others!
> > > **********************************
> > >
> > > On Feb 24, 2008, at 6:12 AM, Myk Robinson wrote:
> > > > Hi-
> > > >
> > > > Seems that this used to work fine for me, so i want to
> > > > clarify correct procedure... I am ordering a part to
> > > > use in a customer's computer. I have the
> > > > part listed in the "Good and Services" section. To
> > > > document the order and add
> > > > the part to inventory, is the correct method to place
> > >
> > > it under AP-- >
> > >
> > > > >Vendor
> > > >
> > > > Invoice?
> > > >
> > > > I have done this, but it is not showing up as an
> > > > expense/purchase when I check
> > > > under Income Statement.
> > > >
> > > > Please advise..
> > > >
> > > > Thanks,
> > > > -myk robinson
>
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