Accounting for supplies
Supplies are defined as:
a) Materials not used directly in the manufacture of your products (e.g., envelopes, packaging) or
b) Materials used in the production of your products that are not able to be inventoried due to an inability to measure the material (e.g., thread) accurately
If your material is a supply, it should generally be entered as a purchase rather than a material. This is because supplies are typically claimable only within the year that they were purchased (materials used to produce your products are, on the other hand, treated as an "asset until sold").
For your record keeping, you can optionally add a non-inventoriable material into Craftybase and then create a material purchase to record the purchase. Craftybase will recognize that the material is non-inventoriable and assign the purchase cost directly to your purchase tally to ensure it is not included in COGS. This is good for situations where you'd like to keep a photo or a description of the supply item purchased. To separate these costs, you can also consider adding a new material category called SUPPLIES to handle these cases.
More information about Supplies and Materials can be found in our blog post here: