Correct - It will not let you change that to an expense account.   We have implmented a monthly process to complete a journal entry at months end.  YOu can either debit your direct job materials, or create a new one and track separately if you wish.

Hope that helps.

Correct - It will not let you change that to an expense account.   We have implmented a monthly process to complete a journal entry at months end.  YOu can either debit your direct job materials, or create a new one and track separately if you wish.

Hope that helps.

Thank you so much for your reply! Just to clarify that I'm understanding correctly, wouldn't we be crediting the account? Meaning the Journal entry would be to debit the Income Account it posted to and credit the expense account?  Also, because we aren't applying this discount to a job, I am using a 6000's account (Overhead Expense).

Yes Correct.  But it's not really an expense.  Any money saved or discounts provided on expenses is considered income.   If you apply to 6000 it's increasing your expenses.  You could move it to Other Income so it's not included in your operation income, just your net income.