How to Record Extraction Lab Consumables
Recording the purchase of non-durable lab supplies like filters, gloves, and glass vials used in the extraction process.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory - Indirect Manufacturing Supplies | Debit | 1,200.00 | - |
| Accounts Payable | Credit | - | 1,200.00 |
💡 Accountant's Note
Lab consumables used directly in production are capitalized into inventory as indirect manufacturing costs and eventually flow into COGS, making them deductible under 280E.
Practitioner & Systems Framework
💻 ERP Architecture
Set up a separate inventory category for extraction consumables to track usage rates per batch.
⚠️ Audit Flags
Mixing lab consumables with general office supplies which are subject to different 280E treatments.
📄 Required Documentation
Purchase orders, itemized invoices from lab supply vendors, and usage logs.
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Discussion & Community Questions
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