So, I finally think I have a handle on how Titan and Quickbooks handle the transaction when an inventory tracked item is added to a job PO. In Titan, the items are added to the equipment or materials section of the job at 0 cost, while the cost is obtained from the purchase order. This makes sense, and even handles the transaction correctly when special pricing is in effect. When passing this transaction to QB, however, the purchase order simply adds the inventory items purchased on the PO to QB's inventory, thus averaging them with what's already there, and then causes them to be removed at the new average cost when the job is exported. This is not correct, as it does not recognize the cost from the PO. Titan has given me the argument that GAAP requires this as average cost must be universally used. That would be true if manufacturers never charged different prices to me for the same item depending on my use. Unfortunately, our business, (HVAC contractor) is more complicated than that. I may normally pay $100 for item X, but if I get a job for an apartment complex requiring 250 units of item X, the manufacturer will give me a special price for item X for that 1 job, and require that any item X's used for the job come from the specific price discounted PO. Real GAAP requires that I match the special cost to do that job to that job revenue. Titan is doing that in Titan, but the way they pass the transaction to QB, and probably other accounting software as well, they are not doing that. In previous discussions of this issue, I have received a number of replies just indicating that people have given up on how Titan does this and they never put listed items on job PO's. I would rather Titan fix this problem, so I have created and idea, (COMMUNITY-I-1731) suggesting a fix. If I am buying an item for a job, its much easier to put it on a job PO and only have 1 transaction for it, so if you also have this problem, take a look at the idea and, if you agree, vote for it.
Mike M CPA & Operations in KC, (go Chiefs)
