Expense Stock Item on Arrival

[michael_boucher2]

Hi,

I was wondering if there is any way to automatically expense a stock item when the goods receipt and landed costs are processed?

We need these items to be stock items so we can keep track of how many we have etc, but we don't want to record them as an asset.

Currently we do a stock revaluation to $0.00 after they arrive, but we want to bypass this step.

Any ideas would be greatly appreciated.

Thanks,

Michael

[JesperB1 · Accepted solution]

Hi Michael,

You can set up a warehouse/Item Group where the stock account is an expense account.

Why this might be a bad idea?

- the item will have an entry in OINM and will influence the stock valuation as seen in the stock audit report unless you somehow manage to exclude the warehouse/item group/account when valuating the stock.

- when releasing the item (in case they will be sold or in any other way moved) the expense account will be credited and you might also have other postings that are not wanted like revenue/COGS etc depending on what kind of document you use. Make sure you understand how the P&L is affected after a full scenario.

Always think about all the ifs and buts before doing something like this.

Hope it helps.

Jesper

[Former Member]

As your item received, there is no automatic way to Expense it. Reevaluate to $0.00 might not be the proper way. Have you tried to issue them immediately after receiving? You may create an alert so that whenever this item on hand > 0. You could issue them out easily.

Thanks,

Gordon