Discussions
SuiteWorld brings thousands of innovators, builders, and leaders together to learn, connect, and shape what’s next. This October, explore how to build a stronger foundation for growth through inspiring keynotes, major product reveals, hands-on sessions, and unforgettable moments—all in one place for our biggest event of the year. Join us
WIP inventory vs. capex help (+ accrual accounting)
Hi all! Hoping to get some tips on inventory management and accrual accounting NetSuite practices. My questions/issues are as follows:
We manufacture equipment, with some jobs lasting multiple months.
1) Currently, our expenses for developing inventory hit the P&L as soon as they are posted in NetSuite. How can we change this such that these expenses hit the P&L when we record the sale?
2) Along the same lines, we would like to have these expenses increase the value of our inventory as they accrue, possibly through using WIP inventory (or any other recommendations you might have).
3) Lastly, we sometimes build and sell the equipment, other times we build and own the equipment, keeping it on our balance sheet. How can we separate these charges such that some are accrued expenses, while others are recorded as capital expenditures?