TABLE OF CONTENTS
Description
Consumable items are intended to never have a stock balance. In other words, each time they are received, they are immediately used(consumed).
Use case: Company A purchases 100,000 nails from Vendor HD. The operational burden of tracking nails individually isn't feasible, given their high volume and low per item value. Therefore, the COGS for these items is booked in total, immediately when they're received.
Item Types
There are two types of Items
- "inventory" - Default
- "consumable"
Inventory type items utilize all existing behavior.
Steps: Receiving Consumables
Direct Purchase
Receiving a Purchase Order Line linked to a Sales Order Line(A direct purchase) for a consumable item will result in no special behavior.
Warehouse
Receiving a Purchase Order Line not linked to a Sales Order Line(A warehouse purchase) for a consumable item will result in an additional stock adjustment being created.
SoftLedger will create a new consume type stock adjustment which will immediately take all received inventory back out of inventory.
Voiding a consumable item received to a warehouse will result in a new voidconsume type stock adjustment as seen below. In addition to voiding the receive adjustment, SoftLedger will void the consume adjustment as well.
Stock Adjustments
Consume
The consume adjustment will Cr. Item Asset Account and Dr. Item COGS Account
Void Consume
The void consume adjustment will Dr. Item Asset Account and Cr. Item COGS Account
Example: Nails - immediately becomes an expense (does not follow COGS workflow)
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