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arkvalleyinfo
Oct 16, 2018 2:26 AM UTC
Solved

Are tools I purchase for use in my shop considered inventory?

I have an auto restoration shop, and purchase tools for use from a local vendor. I want to keep track of these tools for loss and depreciation purposes. How do I enter them when entering a bill from the vendor?

Rustler
RustlerAnswer
Oct 16, 2018 2:26 AM UTC

If your tools are going to be depreciated, then you list them as fixed assets in the chart of accounts, this is normal for high dollar shop equipment.  But a $100 skill saw I would book as an expense.

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8 replies

Rustler
RustlerAnswer
Oct 16, 2018 2:26 AM UTC

If your tools are going to be depreciated, then you list them as fixed assets in the chart of accounts, this is normal for high dollar shop equipment.  But a $100 skill saw I would book as an expense.

    LauriGrace
    Jun 7, 2019 4:38 AM UTC

    Hi. What Expense detail type account would you list a say $250.00 tool as? Thankyou

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