3 Nov 2022 | Windward Software
Capitalizing Inventory Units
Learn how to add additional features to an existing unit to increase its cost value. The Windward Webinar also detailed the setup and process for capitalizing inventory units and provided a demonstration within Windward System Five.
- Jennifer, the moderator, introduced Eugene, the speaker for the webinar, and explained that the presentation would answer questions on capitalizing inventory units.
- Eugene began by explaining the concept of capitalizing inventory units, which involves upgrading or adding features to a unit to increase its cost value.
- He outlined the two main sections for capitalizing inventory units: setup and process.
- In the setup section, Eugene showed where to find the specific setups within the system. These settings can be found under menu setup to setup wizard invoice, setup services invoices, and menu setup tools, printing options, invoice setup.
- He explained the process of capitalizing a unit through a demonstration using a sample unit. This involved adding a service invoice to the unit, adding an additional part, and checking the updated cost value of the unit.
- Eugene demonstrated how to sell the capitalized unit to a customer and showed the back-end side of the process, explaining how the added value gets posted to the same ledger account as the inventory.
- The presenter concluded by emphasizing that capitalizing a unit before selling it could be beneficial due to customer demand or purchasing additional parts separately.
- Jennifer thanked Eugene for his presentation and announced the upcoming webinars. She also addressed a question from the audience about the most accurate inventory report, which Eugene recommended the invoice report under sales reports.
- The webinar concluded with Jennifer encouraging attendees to reach out with further questions.
1:06
Good afternoon everybody. Thank you for joining our Windward webinar today. My name is Jennifer and like always, I'll be your moderator for today's presentation. And at the end of the presentation, we will have time for questions so you can enter them into the question box make sure they have as much detail as possible. Just in case there's something we went over previously, we want to make sure we know exactly what answer you need. Anything that may be a little bit off topic or something a little more complicated, we may answer offline. And if you think of any questions afterwards, please just e-mail support, support that one word, software dot com, and one of our texts will give me a hand and get the answers that you need. Are introduced I'd like to introduce our speaker today, Eugene. And we'll be discussing capitalizing inventory unit. So, without further ado, let's get Started.
1:58
All right. Thanks so much, Jennifer, and yes, hi, everybody. Good. Good day.
2:03
So, yeah, I'll be your presenter for today and we will be discussing capitalizing inventory units. So, just to set your expectations. So, this is all about, you know, giving you an idea on what it is, how to set it up and how to go about the process. So if you have any like issues about, about this, like you're experiencing an issue.
2:29
So we will not be discussing it on this webinar but rather I would suggest you to send in a ticket so that our support technicians can assist you. Alright, so capitalizing inventory units.
2:42
So, what do we exactly mean by capitalizing units?
2:45
So, it's basically upgrading an existing unit or adding features to a unit or simply putting add ons to an existing unit to add or increase the cost value of the unit.
3:04
So, here are the two things that we will be talking about today. So, first is this setup.
3:10
So, I'll be showing where it is, you know, to set it up in your system.
3:15
And, also, we'll be discussing the process, so, how to go about it, and for this setup. So, this is just to kind of show you where to find the specific setups.
3:28
So, in the setup, we have two parts. So, we have this menu set up to, Oh, by the way, you can write this down if you want to.
3:36
So, it, just, to kind of, you know, for reference, so that you know where to find these settings.
3:42
So, again, menu setup to setup wizard invoice, setup, service, invoices, and then the other setup is the menu setup tools, printing options, invoice setup.
3:57
So, again, I'll be showing you where those setups are located in the system.
4:04
And then for the process, so this is how it goes, sort of path S menu sales, sales, and then, choose the service type invoice.
4:13
So, yeah. Those are the bullets or you know, how to go about it.
4:17
But anyway, I'll be showing them to you in the demonstration, Right after this slides.
4:23
I'm just gonna, and this PowerPoint, and I'm just going to grab my Demo.
4:38
So, for the first setup, I'm now in my setup wizard.
4:42
So, in Setup wizard, you go to Invoice Setup, and then under invoice set up, go to Service Invoices.
4:52
So in here, we want to make sure that you service invoice S is enabled, so meaning, you put a check mark on the box.
5:00
Then in here, yep, this is your lectures. So, on my demonstration, I'm using the 1200 for my regular inventory ledger.
5:09
And then we also want to enable the box that says Post service capitalized Invoices to Inventory.
5:22
So, not having this box, Marked check means that you wanted to have a separate ledger account that would house the added inventory value.
5:30
So, which would be a more complex setup and I would suggest you seek for further help with an implementation specialist, because in here, you know, we just want to add the, the added value or to capitalize value added to our regular inventory ledger, which is the 1200.
5:51
In here we have a box that says use alternate invoice sequence forest service invoices. So that's just an option or you can turn it on or off.
6:00
So this basically means that if you turned this on, you wanted a different sequence, invoice number sequence for your service invoices because we will be doing the service invoices on same spot as we're doing a regular sale.
6:16
So, you might want to have a different sequence for your in service invoice numbers.
6:23
So, for this demonstration, I'm just switching that off.
6:28
Again, that's optional, so it's up to you.
6:29
And then the next box is, Prevent cost of goods sold and income from being affected on service invoices by posting cost to the income account.
6:45
So, we do not want to post service invoices to income and cost sales, because we just want to modify the unit for resale.
6:51
And then the last one is suppose service invoices at cost, so, cost, because we don't want, we don't want the system to recognize any income or profit from the process of capitalizing a unit.
7:03
So, yep, that's for the first part of the setup.
7:06
And then the next setup will be the adding off this service invoice to your invoice tree if you don't have it yet.
7:15
So, setup tools, printing options, invoice setup.
7:20
So in here, I already have my service invoice added to my invoice tree, but if you don't have it yet, all you need to do is just to grab the service invoice from this portion here, you drag it over to your invoice tree.
7:33
So, Yep.
7:36
So now I'll be showing you how to go about the process. So I'll be pulling up a sample unit.
7:42
So, on this demonstration, I'll pick this one.
7:45
So just to kind of show you the before capitalizing this as particular unit so in here, you can see that I have my BC 1, 2, 3. So it's a serialized unit.
7:59
And as you can see, it has an initial cost of 2000.
8:06
So if you want to capitalize a unit, all you need to do is just to go a new sale.
8:12
I'm just going to choose Moment support. And then in here, you choose service invoice.
8:20
And for the customer, I have an internal account here.
8:24
So you can also have yours. The reason for this is because I wanted to track all my service invoices to specific customers that when I wanted to see the history.
8:35
So it's easier to to check by just going into this specific customer record.
8:43
And then in there I can see all my service invoices.
8:47
So, I'm just going to hit OK.
8:54
So, right now, the system is giving me this prompt, so it says, Find Unit.
9:01
So, I'm just gonna pick that, BC 1 2 3 unit.
9:08
Then in here, under the Units tab, you can see that my unit is already added.
9:12
So what I'm going to do is I'm interested with capitalizing this by adding a apart a regular part.
9:20
So, I'm just going to add an item here.
9:25
So by the way, my unit is this is just an example, so it is a computer, a basic computer.
9:30
So what I'm interested in is adding a additional part, so I'm just going to put additional eight gigs of ram, an inheritor, just one.
9:42
Just one quantity and then this ram costs me 100. So this is the cost. But if I'm selling the ram just by itself to a customer, say it will be 150 bucks.
9:55
The cost of me having this ram or purchasing this rep is only 100.
10:00
So I'll be adding this ram to my unit so we should be expecting that from the unit.
10:06
Which original cost to 2000 adding this ram worth 100?
10:11
So the new or the capitalist total or value of the unit should be then 2100.
10:18
So, I'm just going to get out of here, exit. So we don't need to tender that because that's just the service and noise.
10:25
And then I will show you the unit again.
10:33
So, there, you can see that my asset cost values got increased from 2000 to 2100.
10:41
And then in here, you can see that I kept the last 100 because I added I ram to it.
10:48
So, on this section here, you can see Tabs, So, I'm just going to go to the invoices and then here, you can see capitalization or Depreciation. So, this is where your service invoice will be listed.
11:02
So, if you have a cup bulk, it's if you have a couple of service invoices, because of, you know, multiple upgrades or added features, steere unit. So, you can see them all in here.
11:13
And then once you decide to sell your unit, should be able to see it on there that completed a tab.
11:19
So, just to kind of show you, let's pretend to create a new sale.
11:24
So we just upgraded our unit and a customer walks in and wanted to purchase that upgraded unit. So I'm just going to pick in any random customer here.
11:42
All right.
11:44
Then we will add that unit. So BC 1 2, 3.
11:53
All right.
11:55
So I'm selling this unit for 3150.
12:00
Then let's just going to tender this. So attending the customer paid cash and then our sales done.
12:07
So, I'm just going to pull that up again, just to show you the back end side of things.
12:19
I guess in my setup, I chose to have the added value posted to the same ledger account as my inventory was just at 1200.
12:29
So, in here, you can see that the amount of my inventory is 2100 instead of the original 2000 before the capitalization.
12:42
So, yeah.
12:45
So, that's, yeah, for the back end and then.
12:49
So, basically, the idea here is you can alternatively style the unit by itself and, you know, manually add the add ons during the point of sale.
12:59
And it will be the same result but what we have done here is capitalizing the unit before selling it.
13:06
So, this could be because, because of customer demand or you may have purchased additional parts separately and then added them into your existing unit and you want to capitalize them together so that no, it's ready for resale. So, the solution is through a service invoice.
13:25
So, yeah, it gets, I guess that's all and, Jennifer. Yeah. I think that's it.
13:32
OK, awesome. Thank you so much, Eugene. If you have any questions, just type them into the question box and Eugene can help find some answers for you. We've got our next webinar coming up. On November 17th, we'll be discussing using the National Accounts feature, so you want to register for that one. And also that we, we have our inventory bootcamp happening. So, if you're interested in that, it's two days. Just connect with your account managers.
14:02
It's November 16th and 17th, so they're going to be discussing best practices for inventory, ordering price changes, and so much more, so definitely connect with your account manager on that.
14:19
OK, I don't see any questions coming into the question box. Oh, we got one now. What is the most accurate inventory report? That might be something to just, well, Eugene, you want to have helped us out with that question? So, yeah, the question is not actually related to our topic for today for the webinar. But just to simply answer your question, I can suggest the invoice report found under sales reports. So, the NVAC report is the most detailed report that you can get in the system. So, you have the flexibility to add a couple of informations, You know, couple of options there to enable or disable.
15:02
So, Yeah.
15:04
But if you need further help up, please feel free to give our support team a call, or you can send it the ticket.
15:10
Somebody can contact you and help you out.
15:14
Yeah, absolutely. OK, Excellent. Is there any other questions before we finish up? I know it's a little bit of a quick one today.
15:28
Alright. Well, I don't see anything else come in. So, if you think of something afterwards, please e-mail support at ... software dot com. And thanks, again, Eugene for your presentation. Excellent job. And we will see you in two weeks, November 17th, for our next webinar.
15:46
Have a great day, everybody.
15:49
Have a great day, guys.
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