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Non-inventory items

 
 
Rick@ASP
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      03-25-2010, 06:47 PM
We have items that we use in our stores - we do not sell them to our
customers. I would like to make them non-inventory items because we really
don't track their usage, but if I do that, I cannot place them on a PO (which
I need to do.)

Is there a way to order a non-inventory item through the system?
 
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Rob @ RMS Systems Inc
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      03-25-2010, 09:00 PM
No not really. As Microsoft would put it 'that is by design'.
--
Robert Armstrong
RMS Systems Inc.
www.retail-pos.com

"Rick@ASP" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> We have items that we use in our stores - we do not sell them to our
> customers. I would like to make them non-inventory items because we
> really
> don't track their usage, but if I do that, I cannot place them on a PO
> (which
> I need to do.)
>
> Is there a way to order a non-inventory item through the system?


 
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POS Wiz
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      03-26-2010, 02:47 PM
> Is there a way to order a non-inventory item through the system?

Do you mean items purchased from suppliers that are "used" in the
store?
To account for these products for tax and reporting purposes, setup a
customer account called Store Expense, then receive and sell these
items at cost to this account.
Periodically pay off the account with a check (or Cash tender with
note to your bookkeeper counted as cash). This will expense the items
against your books.
This is also a legal requirement for sales tax collection purposes
(items should be taxable). Otherwise a tax auditor will estimate this
figure and charge you a penalty for not collecting taxes on goods
purchased for the business.
So it is best to expense these goods as above and collect any sales
tax. This also gives you a dollar figure and history for this type of
expense.

Ron L.
 
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Marc
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      03-28-2010, 03:09 PM

We use a different workaround than Ron. I setup a reason code for inventory
adjustment called "store use". I periodically run an item movement report
filtered for the reason code "store use". Use that report to make the
appropriate adjustments to your accounting software.

Marc

"POS Wiz" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
>> Is there a way to order a non-inventory item through the system?

>
> Do you mean items purchased from suppliers that are "used" in the
> store?
> To account for these products for tax and reporting purposes, setup a
> customer account called Store Expense, then receive and sell these
> items at cost to this account.
> Periodically pay off the account with a check (or Cash tender with
> note to your bookkeeper counted as cash). This will expense the items
> against your books.
> This is also a legal requirement for sales tax collection purposes
> (items should be taxable). Otherwise a tax auditor will estimate this
> figure and charge you a penalty for not collecting taxes on goods
> purchased for the business.
> So it is best to expense these goods as above and collect any sales
> tax. This also gives you a dollar figure and history for this type of
> expense.
>
> Ron L.



 
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Craig
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      03-29-2010, 02:27 PM
I use the same method you do Marc. I prefer not to have to run my store use
items through our register since I already bought them once. I tell my
employees to keep track of what they take off the shelf to use and then a
couple of times a week I run the report and enter the amounts into
Quickbooks, going by my accountants instructions of course. Keep in mind, in
less they added a new report to the default install since I last did it, you
will have to get a modified item movement report with cost added. I will
attach a copy of my report in case someone could use it.

Craig

"Marc" <(E-Mail Removed)> wrote in message
news:%(E-Mail Removed)...
> We use a different workaround than Ron. I setup a reason code for
> inventory adjustment called "store use". I periodically run an item
> movement report filtered for the reason code "store use". Use that report
> to make the appropriate adjustments to your accounting software.
>
> Marc
>
> "POS Wiz" <(E-Mail Removed)> wrote in message
> news:(E-Mail Removed)...
>>> Is there a way to order a non-inventory item through the system?

>>
>> Do you mean items purchased from suppliers that are "used" in the
>> store?
>> To account for these products for tax and reporting purposes, setup a
>> customer account called Store Expense, then receive and sell these
>> items at cost to this account.
>> Periodically pay off the account with a check (or Cash tender with
>> note to your bookkeeper counted as cash). This will expense the items
>> against your books.
>> This is also a legal requirement for sales tax collection purposes
>> (items should be taxable). Otherwise a tax auditor will estimate this
>> figure and charge you a penalty for not collecting taxes on goods
>> purchased for the business.
>> So it is best to expense these goods as above and collect any sales
>> tax. This also gives you a dollar figure and history for this type of
>> expense.
>>
>> Ron L.

>
>


 
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POS Wiz
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      03-30-2010, 01:14 AM
If your state collects sales tax, the workaround you mention won't
survive a tax audit unless you are paying sales tax on the inventory
you adjust out.
It is easier to charge these items to a Store Expense account and
track them as a transaction (invoice). Then you can quickly produce a
report that shows amount and sales tax paid.
Another way do to this would be to flag these items on the PO, don't
receive them, but report the total cost on your monthly sales tax
report and pay the tax amount due.
I suppose you could do this with an adjustment report, as long as it
tallies the costs and you report the total.
The basic premise is you can't use your resale tax exempt status to
purchase goods for the business and not pay taxes on them.
This is a common question during a sales tax audit -- "Have you
purchased any goods from vendors for business use?"
The Store Expense account method provides you with a lot more
information such as who, what, where, when, why along with an easily
trackable expense whenever you write a check to the drawer. Or your
bookkeeper could look up the balance and make an adjustment to that
account once a month to zero it out.

Ron L.
 
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Marc
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      03-30-2010, 01:36 PM
The tax adjustments are exactly the postings made to the accounting
software. The report totals the cost of the items used that tax is due on.
I don't necessarily think one way is better than the other, but was just
offering a suggestion based on how I do it.

One thing though - I would be sure to discount items that you ring up to a
'store' account down to cost, otherwise you are paying more sales tax than
necessary if you base it on retail price.

Marc


"POS Wiz" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> If your state collects sales tax, the workaround you mention won't
> survive a tax audit unless you are paying sales tax on the inventory
> you adjust out.
> It is easier to charge these items to a Store Expense account and
> track them as a transaction (invoice). Then you can quickly produce a
> report that shows amount and sales tax paid.
> Another way do to this would be to flag these items on the PO, don't
> receive them, but report the total cost on your monthly sales tax
> report and pay the tax amount due.
> I suppose you could do this with an adjustment report, as long as it
> tallies the costs and you report the total.
> The basic premise is you can't use your resale tax exempt status to
> purchase goods for the business and not pay taxes on them.
> This is a common question during a sales tax audit -- "Have you
> purchased any goods from vendors for business use?"
> The Store Expense account method provides you with a lot more
> information such as who, what, where, when, why along with an easily
> trackable expense whenever you write a check to the drawer. Or your
> bookkeeper could look up the balance and make an adjustment to that
> account once a month to zero it out.
>
> Ron L.



 
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Craig
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      03-30-2010, 09:25 PM
6 to one half a dozen to another. I just prefer not to ring up store use
items on my register, I prefer to print a report at my convenience and make
the adjustments in QB's. This way my sales reports aren't screwed up with
store use items sold at cost.

Craig

"Marc" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed)...
> The tax adjustments are exactly the postings made to the accounting
> software. The report totals the cost of the items used that tax is due on.
> I don't necessarily think one way is better than the other, but was just
> offering a suggestion based on how I do it.
>
> One thing though - I would be sure to discount items that you ring up to a
> 'store' account down to cost, otherwise you are paying more sales tax than
> necessary if you base it on retail price.
>
> Marc
>
>
> "POS Wiz" <(E-Mail Removed)> wrote in message
> news:(E-Mail Removed)...
>> If your state collects sales tax, the workaround you mention won't
>> survive a tax audit unless you are paying sales tax on the inventory
>> you adjust out.
>> It is easier to charge these items to a Store Expense account and
>> track them as a transaction (invoice). Then you can quickly produce a
>> report that shows amount and sales tax paid.
>> Another way do to this would be to flag these items on the PO, don't
>> receive them, but report the total cost on your monthly sales tax
>> report and pay the tax amount due.
>> I suppose you could do this with an adjustment report, as long as it
>> tallies the costs and you report the total.
>> The basic premise is you can't use your resale tax exempt status to
>> purchase goods for the business and not pay taxes on them.
>> This is a common question during a sales tax audit -- "Have you
>> purchased any goods from vendors for business use?"
>> The Store Expense account method provides you with a lot more
>> information such as who, what, where, when, why along with an easily
>> trackable expense whenever you write a check to the drawer. Or your
>> bookkeeper could look up the balance and make an adjustment to that
>> account once a month to zero it out.
>>
>> Ron L.

>
>


 
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Athrun
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      11-03-2010, 06:44 PM
The <a href="http://www.visualretailplus.com">POS software system</a> we use actually has a spot set up for that. I was so happy when we finally upgraded our system to the one we have now, I know a couple of my co-workers were really stressed out before we changed over.

> On Thursday, March 25, 2010 2:47 PM Ric wrote:


> We have items that we use in our stores - we do not sell them to our
> customers. I would like to make them non-inventory items because we really
> do not track their usage, but if I do that, I cannot place them on a PO (which
> I need to do.)
>
> Is there a way to order a non-inventory item through the system?



>> On Thursday, March 25, 2010 5:00 PM Rob wrote:


>> No not really. As Microsoft would put it 'that is by design'.
>> --
>> Robert Armstrong
>> RMS Systems Inc.
>> www.retail-pos.com



>>> On Friday, March 26, 2010 10:47 AM POS Wiz wrote:


>>> Do you mean items purchased from suppliers that are "used" in the
>>> store?
>>> To account for these products for tax and reporting purposes, setup a
>>> customer account called Store Expense, then receive and sell these
>>> items at cost to this account.
>>> Periodically pay off the account with a check (or Cash tender with
>>> note to your bookkeeper counted as cash). This will expense the items
>>> against your books.
>>> This is also a legal requirement for sales tax collection purposes
>>> (items should be taxable). Otherwise a tax auditor will estimate this
>>> figure and charge you a penalty for not collecting taxes on goods
>>> purchased for the business.
>>> So it is best to expense these goods as above and collect any sales
>>> tax. This also gives you a dollar figure and history for this type of
>>> expense.
>>>
>>> Ron L.



>>>> On Sunday, March 28, 2010 11:09 AM Marc wrote:


>>>> We use a different workaround than Ron. I setup a reason code for inventory
>>>> adjustment called "store use". I periodically run an item movement report
>>>> filtered for the reason code "store use". Use that report to make the
>>>> appropriate adjustments to your accounting software.
>>>>
>>>> Marc



>>>>> On Monday, March 29, 2010 10:27 AM Craig wrote:


>>>>> This is a multi-part message in MIME format.
>>>>>
>>>>> ------=_NextPart_000_00EE_01CACF2A.77642BB0
>>>>> Content-Type: text/plain;
>>>>> format=flowed;
>>>>> charset="iso-8859-1";
>>>>> reply-type=response
>>>>> Content-Transfer-Encoding: 7bit
>>>>>
>>>>> I use the same method you do Marc. I prefer not to have to run my store use
>>>>> items through our register since I already bought them once. I tell my
>>>>> employees to keep track of what they take off the shelf to use and then a
>>>>> couple of times a week I run the report and enter the amounts into
>>>>> Quickbooks, going by my accountants instructions of course. Keep in mind, in
>>>>> less they added a new report to the default install since I last did it, you
>>>>> will have to get a modified item movement report with cost added. I will
>>>>> attach a copy of my report in case someone could use it.
>>>>>
>>>>> Craig
>>>>>
>>>>>
>>>>> ------=_NextPart_000_00EE_01CACF2A.77642BB0
>>>>> Content-Type: application/octet-stream;
>>>>> name="Custom - Item Movement History Report with Cost.qrp"
>>>>> Content-Transfer-Encoding: quoted-printable
>>>>> Content-Disposition: attachment;
>>>>> filename="Custom - Item Movement History Report with Cost.qrp"
>>>>>
>>>>> //--- Report Summary --- //
>>>>>
>>>>> Begin ReportSummary
>>>>> ReportType =3D reporttypeItems
>>>>> ReportTitle =3D "Item Movement History Report"
>>>>> PageOrientation =3D pageorientationLandscape
>>>>> ShowDateTimePicker =3D False
>>>>> OutLineMode =3D True
>>>>> Groups =3D 1
>>>>> GroupDescription =3D ""
>>>>> DisplayLogo =3D True
>>>>> LogoFileName =3D "MyLogo.bmp"
>>>>> ProcedureCall =3D ""
>>>>> PreQuery1 =3D "IF EXISTS (SELECT TABLE_NAME FROM =
>>>>> INFORMATION_SCHEMA.VIEWS WHERE TABLE_NAME =3D 'ViewItemMovementHistory') =
>>>>> DROP VIEW ViewItemMovementHistory"
>>>>> PreQuery2 =3D <BEGIN>
>>>>> =20
>>>>> CREATE VIEW ViewItemMovementHistory AS
>>>>> SELECT Department.Name as DepartmentName,
>>>>> Category.Name as CategoryName,
>>>>> Item.ItemLookupCode AS ItemLookupCode,
>>>>> Item.Description AS ItemDescription,
>>>>> Item.Cost AS ItemCost,
>>>>> Serial.SerialNumber AS SerialNumber,
>>>>> Serial.SerialNumber2 AS SerialNumber2,
>>>>> Serial.SerialNumber3 AS SerialNumber3,
>>>>> Cashier.Name AS CashierName,
>>>>> InventoryTransferLog.ReferenceID AS ReferenceID,
>>>>> InventoryTransferLog.ReferenceEntryID AS ReferenceEntryID,
>>>>> InventoryTransferLog.Type AS Type,
>>>>> ReasonCode.Description AS ReasonCodeDescription,
>>>>> InventoryTransferLog.Quantity AS Quantity,
>>>>> InventoryTransferLog.DateTransferred AS DateTransferred,
>>>>> PurchaseOrder.PONumber AS PONumber,
>>>>> CASE InventoryTransferlog.Type WHEN 2 THEN =
>>>>> InventoryTransferLog.ReferenceID ELSE NULL END AS TransactionNumber
>>>>> =20
>>>>> FROM InventoryTransferLog=20
>>>>> LEFT JOIN Item ON InventoryTransferLog.ItemID =3D Item.ID



>>>>>> On Monday, March 29, 2010 9:14 PM POS Wiz wrote:


>>>>>> If your state collects sales tax, the workaround you mention will not
>>>>>> survive a tax audit unless you are paying sales tax on the inventory
>>>>>> you adjust out.
>>>>>> It is easier to charge these items to a Store Expense account and
>>>>>> track them as a transaction (invoice). Then you can quickly produce a
>>>>>> report that shows amount and sales tax paid.
>>>>>> Another way do to this would be to flag these items on the PO, do not
>>>>>> receive them, but report the total cost on your monthly sales tax
>>>>>> report and pay the tax amount due.
>>>>>> I suppose you could do this with an adjustment report, as long as it
>>>>>> tallies the costs and you report the total.
>>>>>> The basic premise is you cannot use your resale tax exempt status to
>>>>>> purchase goods for the business and not pay taxes on them.
>>>>>> This is a common question during a sales tax audit -- "Have you
>>>>>> purchased any goods from vendors for business use?"
>>>>>> The Store Expense account method provides you with a lot more
>>>>>> information such as who, what, where, when, why along with an easily
>>>>>> trackable expense whenever you write a check to the drawer. Or your
>>>>>> bookkeeper could look up the balance and make an adjustment to that
>>>>>> account once a month to zero it out.
>>>>>>
>>>>>> Ron L.



>>>>>>> On Tuesday, March 30, 2010 9:36 AM Marc wrote:


>>>>>>> The tax adjustments are exactly the postings made to the accounting
>>>>>>> software. The report totals the cost of the items used that tax is due on.
>>>>>>> I do not necessarily think one way is better than the other, but was just
>>>>>>> offering a suggestion based on how I do it.
>>>>>>>
>>>>>>> One thing though - I would be sure to discount items that you ring up to a
>>>>>>> 'store' account down to cost, otherwise you are paying more sales tax than
>>>>>>> necessary if you base it on retail price.
>>>>>>>
>>>>>>> Marc



>>>>>>>> On Tuesday, March 30, 2010 5:25 PM Craig wrote:


>>>>>>>> 6 to one half a dozen to another. I just prefer not to ring up store use
>>>>>>>> items on my register, I prefer to print a report at my convenience and make
>>>>>>>> the adjustments in QB's. This way my sales reports are not screwed up with
>>>>>>>> store use items sold at cost.
>>>>>>>>
>>>>>>>> Craig



>>>>>>>> Submitted via EggHeadCafe - Software Developer Portal of Choice
>>>>>>>> PowerPoint Presentation from SharePoint Content via VSTO
>>>>>>>> http://www.eggheadcafe.com/tutorials...-via-vsto.aspx

 
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