I appreciate your detail for my challenge. I have been counseled to not put reconditioning expenses into cost of goods until a sale has taken place. I have set up all of the accounts that you have described. Presently I have set up a WIP account as a bank account where I am putting all of the entries into inventory. When a sale takes place I am taking from Inventory and posting to the appropriate P & L account. Looks like the business could have a sizable amount of money spent on inventory that cannot be recognized for tax purposes until a sale takes place which could be in a different year.
I am using the stock number for all of the entries which is giving me the class for my reports. When preparing a sales receipt I cannot get the costs into their expense account. I am using a GL entry to move those items from inventory to their appropriate account. In essence this makes the process a double entry. I was hoping to find a simpler way to do this, particularly for the initial posting of the existing inventory. All activity is being done on a cash basis.