Transfer Materials Between Jobs

"My company does not carry an inventory.  How do we transfer material costs from one job to another?"

Even if you do not carry an actual inventory on your books, the Inventory system can be utilized to record bulk material purchases for all jobs.  A 'Materials - Clearing Account' can be set up in the Chart of Accounts as part of the direct job expenses and this account can be used instead of a inventory account when setting up the inventory categories.  This way, when bulk material is purchased, the accounts payable invoice can be coded to the 'Materials - Clearing Account' without a job number.  As material is sent to each job, the inventory transfer entry will consist of a debit (positive amount) to each job with the expense account for Materials and the entry will automatically credit the 'Materials  Clearing Account'.  

If you have an excess of material left on the job, you can use the Transfer Inventory option to remove the material costs from one job and transfer it another job.  The first entry would credit (negative amount) the job that the material is currently on and the second entry would debit (positive amount) the job the material is transferred to.

If your company has purchased the Orders system, then you would handle these transaction through the Orders module.