@waxglass2020 wrote:
We started a candle company. Our inventory includes wax, wicks, vessels, and fragrance oils. Some of these items are used for product testing. For example, our wicks come in quantities of 100, but we may use 30 of them for product testing. We created an expense account for product testing. Should we enter everything as inventory when it received in and then move it to product testing as we check inventory? If so, we are not sure how we move it from inventory to product testing. I understand we can adjust inventory quantities, but not sure how to get it to the product testing expense account. If there is a recommendation on how to do this differently, that would be great. The goal is to make sure we keep inventory and also allocate to product testing. Thanks!
@waxglass2020
Should we enter everything as inventory when it received in and then move it to product testing as we check inventory?
Yes. The process is fairly simple.
1. Create New Item List for Product Testing. For the Income Account field instead of selecting an income account, you select the Product Testing account you created.
2. Create a Zero Invoice. You will enter Quantity but for the Price, enter zero amount. Save. This will reduce your inventory and expense it to the product testing account.
I hope this helps!
