About
Finaloop enables you to track expenses and associate them with different inventory categories.
Inventory-related costs are reflected in your P&L and balance sheet.
The degree to which you fine-tune the categorization will depend on your business needs and chosen inventory method (purchase based, sales-based or unit based using InventoryIQ).
IMPORTANT: If you are using sales based COGS or unit based COGS with InventoryIQ, in certain circumstances, inventory related purchases can be expensed immediately on your P&L instead of being added to the value of your inventory on the balance sheet. Typically, this is allowed for specific purchases of ‘incidentals’, like bubble wrap or packing paper. If this is relevant, then read on!
This is not relevant if you track COGS using the purchase based method.
What are ‘Incidentals’?
Incidentals are expenses related to supplies or materials that are not a material part of your actual product or business.
if you purchase specific supplies or materials that are not part of your main product, you have no real system to track the consumption relating to it, and have no beginning or ending inventory balances for this item, you can usually take them as an immediate expense by marking it as an incidental cost.
Common examples of incidental items are bubble wrap, packing paper, masking tape, etc.
Use the category ‘Other incidental supplies’
>To recategorize inventory-related transactions:
Navigate to Transactions and using the Search or filter, locate the transaction.
On the relevant row, click the Category.
Verify that it’s the correct transaction and change the category to ‘Other incidental supplies’.
If this is a one-time classification click Apply once, otherwise click Apply always.
NOTE: When you mark a cost as Other incidental supplies, it will appear directly in your P&L under your COGS section.