Hi! I am new to the inventory module and have set up items that we ordered and will be distributed to various service providers at no cost to the service provider.  The way I have set up the items is with no cost attached.  When I order/receive & pay for the goods from the supplier, I get a cost for the item.  When I create a receivable to relieve the inventory and distribute at no cost to a service provider there is no revenue attached to the item.

I see that the expense when I purchase the item hits the inventory ledger and when I distribute (sell) the item, the expense (cost of goods) posts to my expense ledger, however the expense transaction is tied to the service provider and not the supplier of the goods.  Not sure if I'm making sense....

Scenario:

I purchase and pay for a box of 100 bottles of hand sanitizer.

I provide 10 bottles of hand sanitizer to 10 different service providers at no cost to the provider, the expense is mine.

The purchase posts to the inventory GL. as $100.00 and the transaction is tied to the vendor I purchased from.

The "sale" posts to the expense GL as $10 x 10 transactions but the transactions are tied to the 10 different service providers that I created a sales invoice for to show who received the product.

Is this a correct way for accounting for the expense of the goods purchased and distributed?

Any suggestions?

Thanks to anyone who can assist. 

--Michelle