Inventory charged internally as a business expense

Question

I am trying to Charge out inventory items internally as a business expense from stock items we sell that we ocasionally use personally in the business. 
 How can I do this quickly in sage. I have the company set up as a vendor and can charge through that module but I know thats not the correct way

JSelemani · Accepted Answer

Hi Janine Dixon 
 Since you are tracking stock, I will recommend using Inventory Adjustments to reflect material pulled for jobs or non-sale use. 
 
 Post Inventory Adjustment to reduce the inventory count 
 Post a Journal Entry, normally you will Credit Inventory asset GL and Debit Expense or drawings account, which is exactly what you want 
 
 Why is this better than using a vendor 
 - Does not create fake supplier invoices or affect your A/P aging. - Keeps your stock quantities accurate. - Posts the cost directly to the right expense/drawings account in one step. 
 I hope this helps.

Sage Accounting

Inventory charged internally as a business expense

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING