Expense Method

With the expense method, the cost of an item posts to the general ledger when you buy the item from a vendor. The expense method is often used for low-cost and labor items that will not have a large impact on the income statement.

To set up an expense-method item

1. Add the item to your inventory. For more information, see Adding Items to the Inventory.

2. On the Inventory Maintenance screen, do the following:

Type the letter N in the Inventory (Y/N) field.
Make sure the Force Option Cost check box is clear.

3. On the Site Prices and Quantity screen, make sure the Relief % field is set to 0.00.

Tip: To access the Site Prices and Quantity screen, click the Qty/Pricing tab on the Inventory Maintenance screen. Then click Detail/Edit.