Comments on: Dealing with Scrap in QuickBooks Manufacturing http://qbblog.ccrsoftware.info/2010/02/dealing-with-scrap-in-quickbooks-manufacturing/ How to make QuickBooks work for you... Wed, 08 Feb 2012 22:51:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Charlie http://qbblog.ccrsoftware.info/2010/02/dealing-with-scrap-in-quickbooks-manufacturing/comment-page-1/#comment-5078 Charlie Wed, 16 Jun 2010 19:58:46 +0000 http://qbblog.ccrsoftware.info/?p=1137#comment-5078 Cary, I'm not an accountant or CPA, so I can't give you an official way of handling this from an accounting standpoint. This isn't the same kind of "scrap" issue that I'm talking about in the article. A different issue entirely. In my mind (unofficially), it seems to me that you have already expensed the materials that went into the whole batch. You've already accounted for the cost of the items. How about just creating a non-inventory item and then selling those? You don't have to worry about the cost, that is already dealt with. Just sell it, this is bonus income. The only reason to use an inventory part in this case is if you want to keep track of how much of these "Edges" items you have on hand. In a bakery, I wouldn't think that you need to track that. But I'm guessing. From a numbers standpoint, this would work. From an official accounting and tax standpoint, I'm not qualified to say... Cary, I’m not an accountant or CPA, so I can’t give you an official way of handling this from an accounting standpoint.

This isn’t the same kind of “scrap” issue that I’m talking about in the article. A different issue entirely.

In my mind (unofficially), it seems to me that you have already expensed the materials that went into the whole batch. You’ve already accounted for the cost of the items. How about just creating a non-inventory item and then selling those? You don’t have to worry about the cost, that is already dealt with. Just sell it, this is bonus income.

The only reason to use an inventory part in this case is if you want to keep track of how much of these “Edges” items you have on hand. In a bakery, I wouldn’t think that you need to track that. But I’m guessing.

From a numbers standpoint, this would work. From an official accounting and tax standpoint, I’m not qualified to say…

]]> By: Cary http://qbblog.ccrsoftware.info/2010/02/dealing-with-scrap-in-quickbooks-manufacturing/comment-page-1/#comment-5076 Cary Wed, 16 Jun 2010 18:56:26 +0000 http://qbblog.ccrsoftware.info/?p=1137#comment-5076 Charlie, I also have found your website to be so very helpful. Following along with Derrick's comment, we are a bakery that has begun using scrap from the build batches to make an additional item for sale--trimming cut from cookie bars--sold as "Edges". It's a fairly new business, and the process has not included a scrap item in the past. Now I'm trying to figure out how to add these things into inventory--the same build now produces 2 products instead of one. Any suggestions? Thanks, Cary Charlie, I also have found your website to be so very helpful. Following along with Derrick’s comment, we are a bakery that has begun using scrap from the build batches to make an additional item for sale–trimming cut from cookie bars–sold as “Edges”. It’s a fairly new business, and the process has not included a scrap item in the past. Now I’m trying to figure out how to add these things into inventory–the same build now produces 2 products instead of one. Any suggestions? Thanks, Cary

]]> By: Charlie http://qbblog.ccrsoftware.info/2010/02/dealing-with-scrap-in-quickbooks-manufacturing/comment-page-1/#comment-5062 Charlie Tue, 15 Jun 2010 15:37:40 +0000 http://qbblog.ccrsoftware.info/?p=1137#comment-5062 Derrick, that depends on how you want to deal with scrap in the first place. QuickBooks doesn't handle this well. I don't have a specific answer for this as it would depend on what you are making, what the items are that you are consuming, and how you want to account for things. I'd give a different answer if you are using gold to make jewelry than if you had roll sheet metal stock. Derrick, that depends on how you want to deal with scrap in the first place. QuickBooks doesn’t handle this well. I don’t have a specific answer for this as it would depend on what you are making, what the items are that you are consuming, and how you want to account for things. I’d give a different answer if you are using gold to make jewelry than if you had roll sheet metal stock.

]]> By: Derrick http://qbblog.ccrsoftware.info/2010/02/dealing-with-scrap-in-quickbooks-manufacturing/comment-page-1/#comment-5058 Derrick Tue, 15 Jun 2010 00:52:32 +0000 http://qbblog.ccrsoftware.info/?p=1137#comment-5058 Dear Charlie, i love your website and it helps me alot. Charlie what should i do if i use the scratch to produce other items? do you have any hints on how to handle that? Thanks in advance derrick Dear Charlie, i love your website and it helps me alot. Charlie what should i do if i use the scratch to produce other items? do you have any hints on how to handle that?
Thanks in advance

derrick

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