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 accurately measure the material (e.g. thread)

If you think your material is a supply, it should generally be entered as an expense 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 expense to record the purchase. Craftybase will recognize that the material is non-inventoriable and will assign the expense cost directly to your expenses tally to ensure it does not get 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 keep these costs further separated, 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:

What's the difference between a Supply and a Material?

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