AccountEdge - Inventory and Items

Q. If you carry a small inventory of supplies (such as signs) that are charged back to the associates, where do you put the information in Account Edge when the Market Center makes the payment? How do you line it up when you sell one to an associate?

A. The KWRI model is that the associates order and pay for their own signs. If your Market Center does order signs, you should pay for them and bill the associates in the same month. If your Market Center orders a large number of signs, you can code it to an Other Asset account named “Signs Inventory” so that the purchase does not disrupt profit sharing. When you sell a sign to an associate you will code it against this inventory account.

NOTE: It is very important that you take an inventory monthly or at the very least quarterly to be sure the amount you have in the asset account tie’s to the number of signs you have left to sale.