This system covers the situation where a �unit� (motorcycle, boat, engine etc) is put into the workshop and worked on. Parts and/or labour are used and the cost of the unit is increased.

Situations include

Servicing or reconditioning used motorcycles, boats, vehicles, engines, mowers etc

Rigging new boats

Assembling or enhancing new motorcycles

The value (ie cost ex GST) of the unit is increased by the cost of the parts and the value of the labour used.

The transaction is processed through the normal workshop system.

Setting up the system for this process requires the following �

1. In Customer Control, an �InHouse� customer used as the owner of the units.
Required settings are
Tick �Account�, �GST Exempt� and �No Statement�
Price Level �V� (sets parts prices to Average Ex Cost)
GL Code to the �Stock On Hand at Cost� ledger � often 1800

(This settings are critical, please double check they are correct)

1. The unit is set up as a part in Product Control, as usual. A standard system for stock codes makes it easier. Eg MCU001, 002 etc for Used motorcycles numbered 001, 002 etc. Or use the VIN , HIN or Serial number for a vehicle, boat or engine. Remember to select an appropriate Group code.

2. The unit is set up in Workshop Control like any other unit. Normally it would be set up in Workshop Control after it was sold, in order to service it. Instead it will be set up before it is sold, using the InHouse Customer as the owner (BillTo)
Most important � the corresponding Stock Code must be entered into the unit details in Workshop Control, so the system �knows� which product it relates to.

The job is then processed as a Workshop Invoice in the normal way.

Note that you may alter the labour rate for these In-House jobs.

When the invoice is finalised, the payment type will default to �Account�

Select �Account� manually if required.

If you have �Departments� set up, ensure you have a Department for In House Reconditioning or similar, with a GL Code for Stock On Hand at Cost (eg 1800)

After finalising the workshop invoice, you can check to see �

The �value� of the stock code has increased. In Product Control, the Average Ex and Current Cost have increased by the value of the job. The �Last Cost� is unchanged, and so holds the original purchase price.

The Transaction can be viewed under Product Control by clicking on the Transactions button (F5)

The �InHouse� customer will also show the transaction in Customer Control, again click the Transaction button (F5) to view the transaction. There is no balance on the customer �account�.

Likewise the transaction can be viewed from Workshop Control

LEDGER TRANSACTIONS

For the ledger Transactions to be posted, two new Control Accounts need to be created (once off)

Create a new Income account for Internal sales of Workshop Labour, and a new Direct Expense account for the Cost of Reconditioning

These ledgers act to balance the �Income� and �Expenses� of the process.

Enter these into the GL Control Accounts under �Internal Labour� and �Internal Charges�

The General Ledger transactions are then

Stock on Hand and Closing Stock are updated for the parts used from Stock.

Stock on Hand is debited (increased) by the increased value of the unit, Closing stock is likewise Credited.

Internal Labour sales (income) is credited (increased) by the value of the labour used.

Purchases (expense) is credited for the parts taken out of stock for internal use.

Internal Workshop Direct Expense (ie �cost� of parts & labour) account �balances� the credits to the Purchases account and the Workshop Labour account.

Edited by Susmita - 15-Jan-2007 at 06:33

Author	Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic
peach Members Profile Find Members Posts Admin Group THE BOSS Joined: 01-Jan-2006 Status: Offline Points: 1295	Post Options Post Reply Quote peach Report Post Thanks(0) Quote Reply Topic: Internal Reconditioning and Rigging Posted: 11-Apr-2012 at 05:17
	Also See: http://www.peachsoftware.net.au/downloads/wshop_internal.pdf

Guests Members Profile Find Members Posts Guest	Post Options Post Reply Quote Guests Thanks(0) Quote Reply Posted: 15-Jan-2007 at 06:32
	This system covers the situation where a �unit� (motorcycle, boat, engine etc) is put into the workshop and worked on. Parts and/or labour are used and the cost of the unit is increased. Situations include Servicing or reconditioning used motorcycles, boats, vehicles, engines, mowers etc Rigging new boats Assembling or enhancing new motorcycles The value (ie cost ex GST) of the unit is increased by the cost of the parts and the value of the labour used. The transaction is processed through the normal workshop system. Setting up the system for this process requires the following � 1. In Customer Control, an �InHouse� customer used as the owner of the units. Required settings are Tick �Account�, �GST Exempt� and �No Statement� Price Level �V� (sets parts prices to Average Ex Cost) GL Code to the �Stock On Hand at Cost� ledger � often 1800 (This settings are critical, please double check they are correct) 1. The unit is set up as a part in Product Control, as usual. A standard system for stock codes makes it easier. Eg MCU001, 002 etc for Used motorcycles numbered 001, 002 etc. Or use the VIN , HIN or Serial number for a vehicle, boat or engine. Remember to select an appropriate Group code. 2. The unit is set up in Workshop Control like any other unit. Normally it would be set up in Workshop Control after it was sold, in order to service it. Instead it will be set up before it is sold, using the InHouse Customer as the owner (BillTo) Most important � the corresponding Stock Code must be entered into the unit details in Workshop Control, so the system �knows� which product it relates to. The job is then processed as a Workshop Invoice in the normal way. Note that you may alter the labour rate for these In-House jobs. When the invoice is finalised, the payment type will default to �Account� Select �Account� manually if required. If you have �Departments� set up, ensure you have a Department for In House Reconditioning or similar, with a GL Code for Stock On Hand at Cost (eg 1800) After finalising the workshop invoice, you can check to see � The �value� of the stock code has increased. In Product Control, the Average Ex and Current Cost have increased by the value of the job. The �Last Cost� is unchanged, and so holds the original purchase price. The Transaction can be viewed under Product Control by clicking on the Transactions button (F5) The �InHouse� customer will also show the transaction in Customer Control, again click the Transaction button (F5) to view the transaction. There is no balance on the customer �account�. Likewise the transaction can be viewed from Workshop Control LEDGER TRANSACTIONS For the ledger Transactions to be posted, two new Control Accounts need to be created (once off) Create a new Income account for Internal sales of Workshop Labour, and a new Direct Expense account for the Cost of Reconditioning These ledgers act to balance the �Income� and �Expenses� of the process. Enter these into the GL Control Accounts under �Internal Labour� and �Internal Charges� The General Ledger transactions are then Stock on Hand and Closing Stock are updated for the parts used from Stock. Stock on Hand is debited (increased) by the increased value of the unit, Closing stock is likewise Credited. Internal Labour sales (income) is credited (increased) by the value of the labour used. Purchases (expense) is credited for the parts taken out of stock for internal use. Internal Workshop Direct Expense (ie �cost� of parts & labour) account �balances� the credits to the Purchases account and the Workshop Labour account. Edited by Susmita - 15-Jan-2007 at 06:33

Internal Reconditioning and Rigging

LEDGER TRANSACTIONS