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Holding inventory at $0 Price and $0 cost

  • 3 August 2023
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I am looking for a way to hold inventory at $0 and $0.  This general idea is that I have used inventory that we want to bring into and out of a location.  With this inventory being used, we do not want to value it at all in our GL.  These inventory items have the same inventory ID as new items that we want to value. I’ve seen the options in the Warehouse Location to cost separately, but I am still seeing the value sitting when I run an inventory valuation report.

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Best answer by Laura02 5 August 2023, 01:31

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Laura02
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Hello,

What is the Valuation method on your Inventory? The Valuation method determines the source of inventory cost. 

The Inventory Price begins on the Cost/Price tab of Stock Items screen (if used items and new items for sale share the same Stock Item ID they also share the same Default Price).  Price can be further influenced by Price Classes and Discounts.

 

Laura

Laura ~ Klear Systems, Inc. Irvine, CA. ~ Please remember to "Mark Best Answer" to help those who are facing the same problem.~
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We use Standard Cost Valuation.

 

My vision is that as a used part comes back to my facility, we can receive it back and not show a cost on our inventory:

 

Part ID: 101 - Qty 30 $20,000 Location: New

Part ID: 101 - Qty 12 $0 Location: Used

 

Laura02
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Hello,

With standard cost valuation method, the stock item will always have the same cost.   

You may consider a different Valuation Method for used items (check with your CPA). Average cost, for example, allows you to assign actual costs or $0 for the items coming back in therefore keeping more accurate costs for used items.

You may consider using a slightly different Inventory ID for the used items, with standard cost of $0 on the used items. Depending on the Item ID’s, you may still be able to report on the items together. For example, we can filter where ID begins with or contains 101.  

101

101-Used

 

Laura

Laura ~ Klear Systems, Inc. Irvine, CA. ~ Please remember to "Mark Best Answer" to help those who are facing the same problem.~
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Thanks Laura.  I’ve gone down the path of different IDs.  I just hate part number creep lol.  But maybe I just need to bite the bullet.

Laura02
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Hi @claudematherne24 ,

I’m still thinking about your cost and I found more information in the Help that may change my answer. ;-)

You might try this in your test environment.

  1. Set up a different warehouse to keep the Used items.
  2. Use Item Warehouse Details to Over-ride Standard cost to $0 for the used items that reside in a different warehouse.

 

Override Standard Cost may work for your used items!  Please try and let us know.

Laura

 

Laura ~ Klear Systems, Inc. Irvine, CA. ~ Please remember to "Mark Best Answer" to help those who are facing the same problem.~
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Thanks Laura, that thought never crossed my mind.  Seems so basic lol.

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