Creating and Managing Consumable Items in PartsManager

Derek Torres
Derek Torres
  • Updated

Important Note: PartsLedger is now PartsManager. PartsManager retains all of the parts purchasing and warehouse management automation benefits of its predecessor. To read more about this exciting change, click here.

 

Consumable Items in PartsManager, formerly known as PartsLedger, is a type of item you buy and expense immediately upon receipt. You may have unique part numbers for them, but you don’t count their quantities or dollar value in inventory. Sometimes you might order them for a job and charge the customer, but more often you don't charge a customer for the items but still need to track the cost of the consumables. Examples: WD40, wires, nails, etc.

This article will walk through managing consumables and using consumable items in PartsManager.

Important Note: Ad hoc (MTL) items should NEVER be set as the consumable item type. They are miscellaneous things you order for a job, but you aren’t interested in tracking by part number. Unlike consumables, they are always ordered for a job and cannot be tracked in inventory. Click here to learn more about Adding Ad Hoc (MTL) Items to Purchase Orders

 

Step 1: Setting Up Consumable Financial Accounts

Its best practice to set up two financial accounts to track consumables. A Consumable Accrual account and a Cost of Consumables account. Follow the steps below to create consumable financial accounts.

Note: These are recommended settings. If your company wants to use different financial accounts to track consumables, or you have specific financial account settings for an integration you do not need to follow these steps.

  1. On the navigation bar, click Financial.
  2. Then click Accounts to open the Ledger Account.
  3. Click the + New button to open the Add Ledger Account Menu.
  4. For the Consumable Accrual account enter the following:
    • Number - Any number you want for this account.
    • Name - "Consumable Accrual"
    • Descriptionnot required
    • Type - Asset
    • Sub-Type - Inventory
    • Location - Your company Location
    • Natural Balance - Debit
  5. Click Submit to create this account.

  6. For the Cost of Consumables account enter the following:
    • Number - Any number you want for this account.
    • Name - "Cost of Consumable"
    • Descriptionnot required
    • Type - Asset
    • Sub-Type - COGS
    • Location - Your company Location
    • Natural Balance - Debit
  7. Click Submit to create this account.

Step 2: Setting Up Consumable Items

This section will walk you through setting up consumable items in your Items List. Repeat the steps below for every consumable item you want to add to your Items List.

Click the following link to learn more about Creating and Managing Items in PartsManager.

  1. On the navigation bar, click Inventory.
  2. Then click Items to open the Items List.
  3. Click the + New button to open the Add Items Menu.
  4. Enter the following in the fields below; any fields not shown are optional:
    • Name - The name of the consumable item.
    • Default Sales Price - Enter "$0.01"
    • Default Purchase Price - Enter the price of the item.
    • Default Inventory Account - Enter your new "Consumable Accrual" account.
    • Default COGS Account - Enter your new "Cost of Consumables" account.
      • Note: If you are not following our recommended financial account settings, use your preferred Inventory and COGS Accounts.
    • Type - Consumables.
  5. Click Submit to create the item.

Step 3: Using Consumable Items on Purchase Orders

This section will walk you through adding Consumables to Purchase Orders. Before you begin please read Creating Purchase Orders in PartsManager.

Note: Consumables items are typically not used on Purchase Orders that are linked to ServiceTrade Jobs using "Direct Purchase for Sales Order." This is because consumables are usually items that you want to track the cost of, but you wouldn't normally bill your customer for. A common example of this is something like WD-40.

  1. Follow the normal steps for Creating a Purchase Order.
  2. You will need to select a Warehouse, even though this is a non-inventoried item. Read How Do Consumables Work? to learn more.
  3. Follow the normal steps for Adding Items to a Purchase Order, but select a consumable type item.
  4. Follow the normal steps for Receiving Items on a Purchase Order in PartsManager.

How Do Consumables Work?

When you receive a consumable item, you have to select a Warehouse on the Purchase Order even though you will not keep this item in your inventory. When the consumable item is received there will be a positive "Receive" type stock adjustment that moves the item to your warehouse's stock, but there will also simultaneously be a negative "Consume" type stock adjustment that removes the item from your warehouse's stock.

Consumbe_Type.png

 

I accidentally received a consumable item and need to undo it.

If you need to undo a receiving action of a consumable item you will need to void the items shipment receipt. Read the following article on how to void a shipment receipt.

Once you have voided the shipment receipt two stock adjustments will be created. There will be a negative "Void Receive" type stock adjustment that "removes" the item from your warehouse's stock, and there will also simultaneously be a positive "Void Consume" type stock adjustment that balances the stock adjustment to zero.

Void_Consume.png

 

 

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