Capitalizing Services Type Products - Expense Account Restrictions

Currently, when your setting up a service type product in Cin7, the system restricts your selection of “Expense Accounts” only to expense type accounts in the Chart of Accounts. This restriction prevents you from purchasing any service expenses and then “Capitalizing” them to the balance sheet because of the inability to select an Asset type account from the product screen for Service Type products when select the default “expense type” account.

Real world example, the maritime shipping freight to get our products to the US is capitalized on a balance sheet account in the COA, and once the material is received, the shipping expense is absorbed into the land cost of the finished good. This required all maritime shipping expenses to be coded to the Balance Sheet as “Capitalized Shipping Expense” and then allocated into the finished good. Cin 7 prevents you from selecting any chart of account item other than expense item, therefor preventing anyone from capitalizing service type expense. There are plenty other types of service expenses that would need to be capitalized so that they can be rolled into a final landed cost of any finished good.

Can you please removed the restriction on the product screen, and allow the user to select any account from the Chart of Account for the “expense” account. This restriction is causing massive limitations from an accounting perspective, and expensing all CAPEX items directly to the P&L in Xero (and I would assume QuickBooks as well).