Supplies are inventory items that are consumed by your business, such as office supplies or cleaning supplies. Supplies include items too small to itemize on work orders, such as rags, cleaners, wheel weights, and small hardware items. The cost of supplies used by technicians may be passed on to the customer as shop supplies.
Supplies used internally are expensed to expense categories, while supplies used for repairs are cost of sales category. Supplies are not sold for profit.
As with materials, inventory counts automatically decrease when parts are sold or consumed, and items will automatically appear on reorder lists when quantities dip below reorder points. Counts automatically increase when shipments are received.