View Full Version : Parts purchased
Thnguyen
Jul 16, 2017, 03:50 PM
I would like to know what is the correct way of posting parts purchased for future work orders. Eg. I would receive a deposit from customer for auto parts/ work order in June and I also purchased parts in June and July for this repair order . The repair order is not completed until August. What is the correct way of posting this transaction?
paraclete
Jul 18, 2017, 03:39 PM
Since you speak of a job that is completed you will post the item to parts purchased as part of cost of sales.
If you want to have a more complex system you will have a work in progress account where you will accumulate costs and transfer these costs to cost of sales on completion
Thnguyen
Jul 19, 2017, 06:09 AM
Thank you Paraclete. And if the job is not completed but parts are purchased for this job? How should I post it?Eg. Auto Parts purchased in July for a job that won't be completed until August 1. Should the parts still be posted as COGS- parts and then do an invoice for customer in August?These jobs are auto service jobs which usually completes within 30 days.