Comments on: Accounting for Parts Used or Lost (for Tax Purposes) https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/ free jewelry tutorials, plus a friendly community sharing creative ideas for making and selling jewelry. Sun, 10 Nov 2019 00:37:30 +0000 hourly 1 https://wordpress.org/?v=5.7.15 By: Rena Klingenberg https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-613060 Sun, 10 Nov 2019 00:37:30 +0000 https://jewelrymakingjournal.com/?p=59528#comment-613060 In reply to Elise Powell.

Elise, great idea for capturing wayward jewelry components – and new way to recycle old pantyhose! 🙂

]]> By: Elise Powell https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-613053 Fri, 08 Nov 2019 02:51:19 +0000 https://jewelrymakingjournal.com/?p=59528#comment-613053 I also put an old leg of pantyhose over my vacuum hose to collect fallen materials. It works great and keeps everything out of the vacuum.

]]> By: Mary https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612916 Wed, 23 Oct 2019 23:02:16 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612916 In reply to Sarah de Larrinaga.

Good suggestion. I wished I had asked this question a lot earlier.

]]> By: Mary https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612915 Wed, 23 Oct 2019 23:00:07 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612915 In reply to Dianne Jacques.

Dianne,
Thank you for your 2 ideas: calculate shrinkage in initial inventory and create the R&D category.

]]> By: Mary https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612914 Wed, 23 Oct 2019 22:56:20 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612914 In reply to Dianne Jacques.

I also use JDM, but where/how do I bookkeep it there?

]]> By: Dianne Jacques https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612910 Wed, 23 Oct 2019 17:18:11 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612910 I use JDM, a lifesaver! At the end of the year I check my inventory against what I’ve used and the difference is loss. On my enamel powders and seed beads I estimate 7%. This took some time as I had to weigh grams of things like seed beads and powders long enough to come up with an average. If the auditors want to come and count my #15 seed beads they’re welcome to it!
Also, keep in mind that materials used for prototype is not loss, it’s part of development. You can have an R&D category in your inventory bookkeeping.

]]> By: Trish Lochnicht https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612885 Tue, 22 Oct 2019 19:14:19 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612885 I admire your attention to detail. I have a lot of losses as my husband makes glass beads. We give or sell broken ones to someone who makes mosaics sometimes. If I accounted for those losses it would probably wipe out all the profits.

]]> By: Sarah de Larrinaga https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612861 Tue, 22 Oct 2019 12:49:28 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612861 When I buy some new supplies I make an adjustment for this sort of loss. So if there are 165 beads on a strand, I’ll enter 150. Obviously bigger beads are less likely to get lost but the tinies go everywhere!

]]> By: Nancy Rocknich https://jewelrymakingjournal.com/accounting-for-parts-used-or-lost-for-tax-purposes/#comment-612859 Tue, 22 Oct 2019 12:28:46 +0000 https://jewelrymakingjournal.com/?p=59528#comment-612859 Just as you said….inventory loss. I would make a journal entry against the inventory and put to COG Inventory Loss. Hope this helps.

]]>