Re: [SL] Service company; ad-hoc parts, parking/fuel expenses

[Michael H. <mh...@it...>]

Responses inline...

On Apr 2, 2009, at 4:08 PM, Alan Murrell wrote:

Hello.

I run an IT service company (well, just myself, really).  I don't  
keep an inventory, but do buy hardware and software for my clients on  
an as-needed basis.  I am wondering if the following workflow is  
correct?

First, I created two parts: "HARD001 - Hardware" and "SOFT001 -  
Software".  My idea is to use just those "parts" for hardware and  
software, rather than creating a seperate part for every piece of  
hardware and software I purchase.  I would then just change the  
descriptions as appropriate (e.g., change "Hardware" to "Dual-head  
video card" or change "Software" to "Microsoft Office 2007  
Profession", etc.)

Once I purchase a part, I would then create a purchase order.  From  
the purchase order I then create a vendor invoice, which I then issue  
a payment on after it has been posted.

This should, I believe, do the following:

   1.) Place the part into inventory
   2.) Balance out any amount owing to "0"

Once the part is in inventory, when I add it to a Sales Order, I am  
assuming that the inventory will be reduced accordingly?
==================================
Yes, and you can probably skip the PO and SO steps and just do  
invoices directly unless there is such a great length of time between  
events that you need the intermediary steps for your own tracking  
purposes.  (Inventory won't care either way).



Is this a good way to go about it, or is there a better way?  The  
only reason I am wanting to mess around with POs and vendor invoices  
is because I need to make sure I track the taxes that I pay on goods  
I am then reselling to my clients, and I don't know of another way to  
do that?

While on the topic, I also keep track of other expenses like parking  
and fuel.  What is the best way to do that?  Should I enter them in  
individually as a GL transaction, or do a PO/vendor invoice thing?  I  
wouldn't want to do a PO/vendor invoice for each individual fuel and  
parking expense, as I have quite a few of them in the course of a  
month.  Is this what "Vouchers" are for?  I am thinking a "cleaner"  
way to do this is to track my fuel and parking for each month  
seperately, but in a spreadsheet (one for each month) which keeps a  
total of each expense, plus any taxes paid on it.  I can then maybe  
create a "dummy" vendor for these sorts of expenses and do the PO/ 
vendor invoice thing; I wouldn't mind doing it once per month, or is  
a GL transaction best?  Can you input taxes paid and have them go  
into the appropriate tax account by doing a GL transaction?
==================================
GL entries are fine.  You'll probably need to create a couple of  
different expense accounts for fuel vs meals etc depending on the tax  
laws in your region.  A few minutes, (literally), with a bookkeeper  
will tell you what you need to know in that regard.






I hope that makes sense?

Thanks for your tips!

-Alan

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