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

[Jeff R. <je...@jr...>]

Ooops forgot the second half of your question.

I put all of my gas and parking in using AP/Add transaction. I have an 
account in the GL for gasoline expense and another for parking expense. 
I just put the purchase in under Chevron and separate out the taxes. I 
also set up a bank account named "Amex" and I enter it as paid the same 
day from that account. that way it's closed and done with. Then at the 
end of the month when I pay the Amex card I do a single transfer from 
the business chequeing account to the Amex bank account and it zeros it 
out. This has the added benefit of allowing me to easily see how much 
business expenses I've charged onto the amex at any time during the 
month. Again, the taxes all go where they are supposed to and show up on 
the taxes paid report.

Jeff

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?
>
> 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?
>
> I hope that makes sense?
>
> Thanks for your tips!
>
> -Alan
>
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