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Tracking R&D parts in NetSuite (or other accounting system)

Our R&D team wants to be able to know what parts are available to them for building prototypes and doing other R&D. We don't want them to do this in NetSuite as inventory since it is not inventory for accounting purposes and we don't want them to be able to assign part numbers, etc. At the same time, we do want them to use the Purchase Order functionality in NetSuite for orders for obvious reasons. Any suggestions about how best to do this in or outside of NetSuite?

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Wont a simple Project Management Software with a good cost module do?

1. Most if not all R&D costs are EXPENSED. Hence, the "accounting" portion of it is simple. A suggestion is R&D expense subaccounts? Maybe on a per project basis?
2. Since it is expensed, you can't really lodge it to inventory (and assign an inventory code). Or if it is an inventoriable (you already stock them) asset, you can transfer it (the asset) to expense.
3. Employees can still use the PO functionality.
4. The side benefit in using a Project Management Software is that all the other costs (i.e. manpower) can also be captured.

"R&D team wants to be able to know what parts are available to them for building prototypes..." --> not sure what you mean by this but generally, the project approval process (where estimated costs and parts, whether inventoriable or to be ordered) would have been presented).

Now, making sure that those parts ordered really went to the project/prototype is a different issue altogether. Bear in mind that there are also a lot of wastage in R&D where parts ordered may end up just not being used.

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