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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.

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