How to categorize Non-Inventory office and work equipment in the Item List that may be sold after replacing?

King-Brown · ‎December 10, 2018

Hello, I need help setting up the names in the Non-Inventory Parts list for company equipment and software I sell to help cover replacement costs. I have sold cell phones, phone cases, Software / Operating system discs, GPS devices, computer hardware, routers, printers etc. Most items will be sold at a loss and some will have a profit if I got it free through a promotion or a deep discount.

What names is it best to use to track this type of inventory. I have three ideas but don't know which one is best for accounting and tracking purposes.

1) Enter each item individually but I run the risk of the item not being salable afterwards.

2) Enter each item under a special category like Computer (computer/software/hardware), Communications (cell phone/office phone/cases), Peripherals (printer/modem/router), Vehicle (GPS/equipment). These are items I eventually have to replace but don't know if it's necessary for selling, profit or tracking purposes as they may serve for more than 2 years.

3) Enter everything under 2 categories Office Equipment and Work Equipment and call it the day.

Thanks you for taking the time to read this as I have learned from reading your other posts.

Rustler · ‎December 10, 2018

first thing is that non-inventory is a misleading name, it is really an expense item. It does not hold qty or value, so when you use one in a purchase the amount is sent to the expense account on the non inventory item screen immediately

Answering your question is a harder.

If you have expensed the items in the past, then selling them is income in the present period

If the items were listed as assets when you purchased them, then the sale is income and you expense the asset value. If they were listed as fixed assets and depreciation was taken in years past, that depreciation also has to be used to lower the expensed asset value.

Since there are so many if this then that possibilities that is the best I can do for you.

View solution in original post

Rustler · ‎December 10, 2018

first thing is that non-inventory is a misleading name, it is really an expense item. It does not hold qty or value, so when you use one in a purchase the amount is sent to the expense account on the non inventory item screen immediately

Answering your question is a harder.

If you have expensed the items in the past, then selling them is income in the present period

If the items were listed as assets when you purchased them, then the sale is income and you expense the asset value. If they were listed as fixed assets and depreciation was taken in years past, that depreciation also has to be used to lower the expensed asset value.

Since there are so many if this then that possibilities that is the best I can do for you.

qbteachmt · ‎December 10, 2018

We covered this for you in quite a bit of detail previously, here:

https://community.intuit.com/questions/1386208-how-to-record-the-acquisition-and-sale-of-a-free-cell...

You are asking the same question: you bought Fixed Assets and other tools and equipment to use.

Then, if they have any value, you sell them, instead of trash or recycle.

It is the same topic you asked.

I will close this one.

Anonymous · ‎January 11, 2019

Dead Link

qbteachmt · ‎January 12, 2019

@Anonymous

The person asking, confused their Own Fixed Assets with "noninventory."

Fixed Assets get Disposed or taken out of Service. The Noninventory Item is considered a way to show you buy and sell, or simply sell, something. So, at most, the Selling of Fixed Assets could be a Noninventory item linked only to Income, and then they still need to address removing assets and recapturing depcreciation, etc, for the Balance Sheet events that are part of this.

So,. for instance, you would set up and use on Noninventory Type Item and name it "Used Office Equipment" for selling your own office equipment, which is not the same as being a business whose operation is to Buy and Sell office equipment. That's the different between Asset Sales and regular operations.

Topics

Training

Community

Resources

How to categorize Non-Inventory office and work equipment in the Item List that may be sold after replacing?