We sell new and use computer components (mostly new). How do we sell components from inventory to the company itself? Example: we want to build a new computer, for company use, from parts we have in inventory. Do I set up the company as a customer of ourselves? Or just take the stuff and charge it off as a loss? Or or????
how do I sell to my self/my company
Jul 13, 2007
3 Replies
Personally, I would make a journal entry:
Debit - Fixed Asset Credit - Inventory
for the parts used, all at cost. When you purchased the inventory, you really purchased your own fixed assets at the same time you purchased merchandise for resale.
So would I only after I ascertained that they were not keeping their inventory using a perpetual system.
If you were in Ontario I would highly recommend to set up your company as a new customer (maybe add the word Buyer) so that you could charge yourself Provincial Retail Sales Tax.
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required