TIP: Refer to a printed Trial Balance while reading this topic. TIP: Refer to a printed Trial Balance while reading this topic.
The software's General Ledger has three built-in sub-categories of Expenses Accounts:
Cost of Sales - Most expenses in your business occur as a result of sales - buying parts for resale and paying for outside labor. Expenses which occur directly as a result of sales are tracked in the Cost of Sales GL Accounts.
Miscellaneous Expenses - Operating expenses resulting from activities other than cost of sales are tracked in the Expenses GL Accounts.
Other Expenses - User defined accounts for any other expenses that you may be required to create and manage.
The software's Cost of Sales Sub-Category is divided into these built-in Accounts:
Inside Labor Costs - This Account tracks the cost of Inside Labor Sales, if you track production labor as a cost of sales you will adjust payroll expenses against cost of labor.
Outside Labor Costs - This Account tracks the cost of Outside Labor Sales, which is labor out-sourced to Suppliers and marked as such on invoices.
Materials Costs - This Account tracks the cost of parts sold on invoices - both inventory and parts from suppliers.
Whole Goods Costs - This Account is planned for future use, but not yet implemented in the software.
Work Order Supplies Costs -This Account tracks the cost of supplies placed on invoices (exclusive of the miscellaneous portion of Shop Supplies). In the software, supplies are not sold for profit.
The software's Expenses Sub-Category is further divided into these sub-categories and Accounts:
Materials Shrinkage (Recounts) - When you recount materials inventory down (lose stuff), the totals are tracked in this Account.
Supplies Shrinkage (Recounts) - When you recount supplies inventory down (lose stuff), the totals are tracked in this Account.
RGB Shrinkage (Recounts) - When you recount the RGB(Returned Goods Bin) down (lose stuff), the totals are tracked in this Account.
Supplies Consumed Internally - Supplies pulled from Supplies-type Inventory for use in your own building (like toilet paper) using the 'I used one' tool, are tracked in this Account.
Shipping Charges Paid Out - Shipping charges added to Supplier Invoices are tracked in this Account.
Supplier Invoice Adjustments (Debits) - Simple adjustments made to Supplier Invoices are tracked in this Account.
Receivable Account General Credits - General credits added to customers' accounts receivable are tracked in this Account.
Payable Account General Debits - General debits added to your accounts payable with your suppliers are tracked in this Account.
Payable Account Service Charges - Service Charges added by your supplier to your accounts payable with him are tracked in this Account.
Bank Account Adjustments (Debits) - Debit adjustments applied to your Bank Accounts are tracked in this Account.
Tax Adjustments (Debits) - Debit adjustments applied to your tax remittance forms are tracked in this Account.
Cash Outages - Shortages recorded in your Cash Drawer during the Cash Balance are tracked in this Account.
Non-Reclaimable Taxes Paid - The software automatically maintains one GL Expense Account for each Other Charge which is enabled at your business Location and marked as an expense-type Other Charge. These Accounts hold the value of Other Charges you have remitted using the Tax Remittance form. (See Taxes & Other Charges)
Expense Categories - The software automatically maintains one GL Expense Account for each Expense Category you have set up and enabled at your Location. Expense Categories generally track operating expenses, but since they are user-defined, are flexible enough to track anything. Supplies Inventory may optionally be categorized by Expense Categories. (See Planning your Expense Categories).