This article will show you how to setup different Transactions Types for Internal Purchase of Supplies that will allow you to expense them to a particular General Ledger


 

Expensing Parts for use in Workshop / Dealership


At the dealership the sales person wants some polish of the shelf to clean the merchandise or a mechanic needs a tube of grease of the shelf for workshop

You can set this up as an internal sale and have the transaction adjust your inventory and accounting transaction in your accounting package. There is a little bit to setting this up but once the set up is complete it is an easy process


Step 1

Ensure the relevant categories you want for the internal sale have been created with the correct General Ledgers

Go to System Settings > Accounting Integration > then go to 6. Categories. 

If you need to create a new category click Add a New Category 

The income GL will have no consequence as the sale amount will be nil. You do need to remove the part from inventory though and direct it to an expense account or a COGs account

Step 2 

Accounting Integration > Transaction types - Select Add a new sales type: Part Sale

Type in a Code – This is the name of the transaction type you will see on the sales order (CO)

In Part Category field - select the category that you have created or want to use for the transaction

Click Save


 

Step 3

Create an Internal Customer and have the relevant Price levels and Account Types 

New Internal Customer 

The Business Name of the Internal Customer should explain what you use this customer for ie Internal Shop Supplies



New Price level

  • To set up or check the Price Level go to System settings> Settings and Controls > Price levels

We would suggest that you will have an internal price level set up at cost price and this is the price level you attached to your Internal Customer

This is the link to the relevant article if you need further information - How to Create or Amend Price Levels


  

New Account Type 

  • To set up or check Account Type go to the other tools Icon 

We would suggest that your Internal Customer set up and to be sales tax / GST exempt

This is the link to the article that explains how to do this - Setting up Transaction Type for Internal Purchase of Supplies



If you require different Internal Customer for different expenses, then you will need to follow the process 1-3 again for each one.


Step 4


From the Blackpurl Header > select Sell > add the relevant Internal Customer for a Parts and Accessories 

Then select Change type > Select the Transaction Type ie Internal Stock > Save



Search and add the relevant part that you are going to expense off >  Enter Qty > change the retail to $0


 

Then check out as normal by selecting a Payment Method for the $0 amount > add payment> Finalize check out. 

That’s it


Accounting Integration 

In your accounting package

  • no income will show (remember you processed the sale with Retail Price as zero)



  • But a journal will remove the cost of  item from Inventory General Ledger and also Debit the Expense General Ledger that was setup on your Category

It will look similar to this example: