Each month, we bill our clients for several "services" we provide (i.e. web/e-mail hosting, spam filtering, remote monitoring) for which we do not stock inventory or need to track quantities on-hand. If you make the item a Sales Inventory item type, the accounts are posted correctly, but you also get negative on-hand values.
Specific example: We resell e-mail spam filtering to our clients. We sell it for $x.xx per mailbox and it costs us $y.yy from our 3rd party provider. We have item "80001? setup for this service and assigned it a current cost of $y.yy. When we post a sale for this item on an invoice, we want the revenue to go to our "Revenue - Internet Services" account and the cost to go to the "COGS - Internet Services" account. If the item type is Sales Inventory,the transaction posts the right accounts, but it deducts from Quantity On-Hand creating negative On-Hand values. If the item type is Services, quantities are not tracked but only the revenue account is posted.
How can we get the cost of $y.yy posted to our "COGS - Internet Services" account? We don't want to use a non-inventoried miscellaneous item number that does not exist in the item master file, because we don't want to have to specify the account distribution every time and we have some reporting requirements that key off one of the user-defined category fields on the item record.
Any thoughts or solutions would be greatly appreciated.
Specific example: We resell e-mail spam filtering to our clients. We sell it for $x.xx per mailbox and it costs us $y.yy from our 3rd party provider. We have item "80001? setup for this service and assigned it a current cost of $y.yy. When we post a sale for this item on an invoice, we want the revenue to go to our "Revenue - Internet Services" account and the cost to go to the "COGS - Internet Services" account. If the item type is Sales Inventory,the transaction posts the right accounts, but it deducts from Quantity On-Hand creating negative On-Hand values. If the item type is Services, quantities are not tracked but only the revenue account is posted.
How can we get the cost of $y.yy posted to our "COGS - Internet Services" account? We don't want to use a non-inventoried miscellaneous item number that does not exist in the item master file, because we don't want to have to specify the account distribution every time and we have some reporting requirements that key off one of the user-defined category fields on the item record.
Any thoughts or solutions would be greatly appreciated.
