In The Business Edge you can setup products as expenses. This enables you to create Purchase Orders for expense items and ensures they are coded to the General Ledger properly.
Step 1 is to create Product Classifications with a Type that is either Expense – Physical Count Kept or Expense – No Physical Count. Most often companies use Expense – No Physical Count. If you would like to purchase and maintain a count of certain expense items such as specific boxes, that is where the Expense – Physical Count Kept can be used.
Below is the Enter & Edit Product Classification screen. Note that the fourth field – Product Type is set to Expense – Physical Count Kept. Normal inventory Classifications are all set to Product Type – Standard.
Step 2 – You can now setup Products for Expense Items. You can have a specific product like an 8 x 8 x 4 Box or you can create a generic non-stock item called Shipping Supplies. Most companies are not going to keep track of Office supplies so they will have something like Product Code /OFFICE. In the Product, the General Ledger Asset and Cost of Goods Sold accounts are coded to Office Supplies. When the PO is received the system will Debit Office Supplies instead of Inventory.
Below is an example part, notice the second screen – Additional Information shows the Expense GL.
Below is what the PO Line might look like:
The General Ledger posting is shown below. When the PO is received it will Debit the intended G/L account that is assigned to the Product.