Raw Material vs Finished Good Material Inventory Tracking

This FAQ will go over the accounting process of a coil as it is purchased, manufactured into a panel, and then invoiced to the customer.

Purchase

When a coil is purchased, it will show up in the raw material inventory account.

Manufacture

When a panel is manufactured out of the coil, it will then be moved to the finished goods inventory account. This step happens when the panel is marked completed in the shop. This is true for items that are set to track stock. Nonstock items, like special trim, post directly from inventory to COGS when the build is posted.

Invoice

After the customer is invoiced, it will then be moved to the panel COGS (Cost of Goods Sold) account.