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king01
Level 1

Inventory used on company equipment

Hello all, well I am new at this and trying to train myself on how to use Quick books. Sorry if these questions may sound dumb.

I use this for my Ice vending machine business, I own several machines and I also stock and sell many parts for these machines to other vending machine owners. Which Quick books works great for keeping an inventory log. However I occasionally need to use the inventory I Sell on my own company equipment, I need help figuring out the best way to track when I do this to keep my inventory correct. Example, I have a part break on my company vending machine and I already have the part showing in stock in quick books and I pull the part from my shelf to use on my machine what is the best way to track that part pulled from inventory? I also stock and sell boxes of Ice bags these machines use. My machine constantly uses them as well. What would be the best way to track that? Just need help on figuring out the best way to track these changes in my inventory. Thank you in advance!

4 Comments 4
ShiellaGraceA
QuickBooks Team

Inventory used on company equipment

Hello king01,

 

QuickBooks Online Plus lets you track the stock quantity, sales revenue, and the cost of goods sold. The details are found in this article: How to set up Inventory tracking.

 

To correctly record your own inventory part (your own company equipment), I would suggest contacting an accountant.

 

You can always leave a reply if you have more questions. We're here to help.

Rustler
Level 15

Inventory used on company equipment


@king01 wrote:

Hello all, well I am new at this and trying to train myself on how to use Quick books. Sorry if these questions may sound dumb.

I use this for my Ice vending machine business, I own several machines and I also stock and sell many parts for these machines to other vending machine owners. Which Quick books works great for keeping an inventory log. However I occasionally need to use the inventory I Sell on my own company equipment, I need help figuring out the best way to track when I do this to keep my inventory correct. Example, I have a part break on my company vending machine and I already have the part showing in stock in quick books and I pull the part from my shelf to use on my machine what is the best way to track that part pulled from inventory? I also stock and sell boxes of Ice bags these machines use. My machine constantly uses them as well. What would be the best way to track that? Just need help on figuring out the best way to track these changes in my inventory. Thank you in advance!


If you want to track repair costs over time per machine, set up a class per machine

use inventory adjust, set the adjusting account to machine repair expense, select the class and lower the qty of items used.

 

BAGS used are part of COGS, so either do an inventory adjust with COGS as the adjusting account for bags, or "sell" the bags item for a zero sales price on a sales receipt

john-pero
Community Champion

Inventory used on company equipment


@Rustler wrote:

@king01 wrote:

Hello all, well I am new at this and trying to train myself on how to use Quick books. Sorry if these questions may sound dumb.

I use this for my Ice vending machine business, I own several machines and I also stock and sell many parts for these machines to other vending machine owners. Which Quick books works great for keeping an inventory log. However I occasionally need to use the inventory I Sell on my own company equipment, I need help figuring out the best way to track when I do this to keep my inventory correct. Example, I have a part break on my company vending machine and I already have the part showing in stock in quick books and I pull the part from my shelf to use on my machine what is the best way to track that part pulled from inventory? I also stock and sell boxes of Ice bags these machines use. My machine constantly uses them as well. What would be the best way to track that? Just need help on figuring out the best way to track these changes in my inventory. Thank you in advance!


If you want to track repair costs over time per machine, set up a class per machine

use inventory adjust, set the adjusting account to machine repair expense, select the class and lower the qty of items used.

 

BAGS used are part of COGS, so either do an inventory adjust with COGS as the adjusting account for bags, or "sell" the bags item for a zero sales price on a sales receipt


If any of your products are sales tax taxable (including repairs to your machines if you hired it out) I believe you have to do something other than simply adjust inventory since you would owe Use Tax (equivalent of sales tax) on fair market value of what you internally consume. Just a thought

Rustler
Level 15

Inventory used on company equipment

No use tax is owed on inventory cost if it is withdrawn for personal use or withdrawn for the business

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