Comment by lisper
2 years ago
> I guess technically this would be selling a service instead of a good.
LAAS!
Sorry, no, lemonade is not a service. It is true that you are adding value by turning lemons into lemonade, but that's not what you're selling. You're selling the lemonade. LAAS would be turning someone else's lemons into lemonade for them, but a typical lemonade manufacturer owns their raw materials.
I completely forgot what the original post I was replying to was about lol. If it was about lemonade then yup the lemons and the lemonade should be on the books as assets.
I’ve also wondered what to do if you grow your own lemons. I guess you could offset the new asset on your books with a Harvest income account?
One of our customers built an ERP for food distributors, I should ask them how they would handle it.