How to Record Extraction Machine Maintenance
Accounting for routine servicing and part replacement for ethanol or CO2 extraction units.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Inventory - WIP (Extraction Indirects) | Debit | 850.00 | - |
| Cash | Credit | - | 850.00 |
💡 Accountant's Note
Maintenance on production equipment is an indirect production cost that must be capitalized into inventory under IRC 471-11 for processors.
Practitioner & Systems Framework
💻 ERP Architecture
Link maintenance work orders to specific extraction batches to capture the full cost of concentrate production.
⚠️ Audit Flags
Expensing maintenance directly to the P&L for a processing facility, bypassing the inventory absorption process.
📄 Required Documentation
Service logs, technician invoices, and replacement part receipts.
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