Mapping, use of scrap for repairs.

Question

Dear all,
The scenario is such that,
A company takes machines for servicing. The machines are serviced / repaired by purchasing old machine and using their spares. After some time all the spares from the old machine are used for machines serviced, and old machine is not in existence any more.
How to map this in B1.

Answer 1

Hi Bhojani,
To handle the case it would be simple if we just go in the finance level. At time time of old machine purchase, record it in the a/p invoice as a service, to a temporary account.
JE:
Dr. Temporary Account    XXX
      Cr. A/P to Vendor                  XXX
To record usage of old machine spare parts to repair the broken one, use inventory revaluation, type: cost change. Change the increase account to the g/l you choose before in the a/p invoice.
JE:
Dr. Inventory Account of broken machine    XXX
      Cr. Temporary Account                                 XXX
Don't forget to add necessary remarks indicating that the revaluation is due to repairing it using old machine spare parts.
But if do it repetitively, build an add on would be the best option. But i thing the process in the background would be just the same as i mention above, the add on just to handle the process to be more simple.
Cheers,
Dody