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Recording machine sales that are not a fixed asset

How do you record the record of a machine sale that is not a fixed asset but a part of the normal operation of the business. We are a small production facility where our primary products sold are the ones we produce - but we also sell small production machines. We purchases these machines from another vendor, mark them up and sell them out of our operation. My thought is that the machine revenue is recorded in machine revenue and the cost of the machine should be recorded in cost of goods machines. Should there be any time that our inventory account for these products that may be in stock should be effected? does this makes sense? thanks for your help.


Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Hi Anon
If you buy machines and sell them as a finished product, it looks like you are trading in them-so the purchases are inventory and the sales are COGS. Any unsold units at period end should be reported as inventory on hand.
Your customers who buy these machines may capitalize them based on how they use them, but that's their accounting, not yours:)


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