How has anyone setup a maintenance part inventory? Are you establishing it as an expense or asset.
We want to be able to maintain and inventory for parts used in maintenance and issue them to the maintenance jobs and have them included on the maintenance job bom. Dont really want to carry them as an asset but on the other hand we would prefer to have the cost on the job as the part is consumed.
Curious what other user have done. We are doing maintenance jobs in the service mode
asset vs expense is really a financial decision. If you’re consuming assume it an expense. If it’s reusable tooling consider it an asset.
We have interchangeable machine parts that will be lot tracked and have a purchased cost on them in inventory, we can subcontract those for repair and see lifetime costs of those machine parts. These might show up in the BOM for a changeover job as reference parts (not fixed, 0 qty req available as of 10.2.200 at least) but would never be cost to the job because they will persist in inventory after the job for future jobs.
We also have consumable items like grease tubes, and cutting knives that might get issued to a job accounted for once and then never counted again.
You could make a part class for these items. Setup a GLC for the Part Class to expense them upon receipt. Leave them as Qty Bearing, so you have visibility of QOH.
By using the Part Class with a GLC, the part would be expensed upon receipt. And if any transactions (like being used on a job, or included as a line on an order), that Exp acct would get credited (or debited).
Take the following:
Part GREASE has Part Class MSPLY which has an “inventory” acct of 5432 (the real inventory uses acct 1101)
PO Receipt of 10 of that part (at $5.00 ea), creates a PUR-STK parttran but hits 5432
Someone takes 2 from “stock”, using Misc Issue, with a Reason code that hits the expense acct. This makes a STK-UKN, for $10.00, but credits and debits the same Acct (5432)
The part is added to a job and 3 are issued to that job. A STK-MTL tran happens. But instead of crediting the real inventory (1101), it credits the expense acct (5432), and debits WIP.
When that job is shipped or received to Stock, the value of that would be in the job cost and would end up in COS or real inventory(1101)