Inventory
Good faternoon, i work for a company which press MDF and laminate sheets ( raw materials ) to make final product, now for some of the products we will ask another company to press them for us, we wi...
Forum Discussion
Hi Jo2014 , if you hold the raw MDF and laminate sheets in stock as such, then ignoring spoilage/wastage you could record this as follows:
1. Create inventory items for the pressed sheets
2. Create a purchase order on the processor with negative qty of raw sheets at their cost, to record the issue. Note that the onhand qty of the raw sheets will not reduce, but the available qty will.
3. On receipt of pressed sheets, add a line to this order for the pressed sheets at a cost of the raw sheet plus $21/sheet
4. Convert this order to a bill. The net payable should be the processing charge.
Made-up example:
Issue -60 raw sheets at $120 per sheet = -7200
Receive 60 pressed sheets at $141 per sheet = 8460
Difference = 60 sheets at $21 = 1260 to pay
Hi Mike
Thank you for your help, could you assist me with below questions please?
1-when i create PO about Raw Material should i ionclude GST?because i use two material to Build the finished product one MDF which has GST and the other one laminate sheets( which will be pressed on MDF) which we buy from oversiese and are GST free.
2-when i add line for pressed sheets at a cost of the raw sheet plus $21/sheet, the gst ? In this case Gst appliyes to cost of the raw material too.
thank you so much for helping me out.
Hi Jo2014 , if your business is claiming the GST content, then the amounts on your purchases should be net of GST, then add the GST at the bottom. (Untick the GST flag at the top of the purchase window to see your line amounts as GST-exclusive).
thank you so much i really appriciate your help.
