You may decide not to track inventory but instead to buy a few bulk items
and expense them to materials when you buy them. Later you will want to track
the costs of using the bulk goods on a specific job or jobs. To do so, you need
to set up a new account ("Adjustment Register") in your chart of
accounts and use the procedure below to allocate a portion of the bulk goods to
a specific job.
This applies to painters, electricians, or landscape
contractors who purchase materials in bulk (like paint brushes, masking tape,
electrical tape, switch plates, and so on) and who want to allocate portions of
the materials (perhaps a paint brush or two) to a specific job.
Go to the Lists menu and click Chart
Click Account at the bottom of the list and then
Click the Type drop-down arrow and then click Bank.
If you are using account numbers, enter 1198.
In the Name field, enter Adjustment
This procedure records a check with a zero amount in the Adjustment
Register, but allocates the cost of the items used on the job to the
appropriate job cost report.
Go to the Banking menu and click Write
Click the Bank Account drop-down arrow and click
In the Check No. field, enter a short description.
Enter the date the material was used.
Skip the Pay to the Order of field.
In the Memo field, enter a description of the materials
used, for example 2 paint brushes.
Click the Items tab and choose the correct item,
such as Painting.
Enter the Qty, Cost, Customer:Job,
On the next line, fill in the exact information as above but with a negative
quantity and without the Customer:Job.
Click Save & Close.