Software: MoneyWorks accounting software
Many accounting software cater assembly feature, it allows user to build assemble product from raw materials. Example: in Gift and Hamper business, owner need to assembly hamper (finish product) from raw materials (canned food, dry food, wine, and etc.).
However, not many software in the market are capable of breaking down an item into parts. Example: in re-condition or recycle business, business owner purchased used machinery, tear down the machine into parts and sell them off as re-condition spare parts. Or in some cases, they may tear down few machines and re-assemble them into one or two usable machine.
MoneyWorks does provide a breakdown feature, which a great help to recycle business.
When purchased used machinery from a factory, you can simply enter it as a Purchase Invoice in MoneyWorks, create a Product item for this Machine and enter it as a line item in your transaction. Example: M1001 is your part number with a purchase price of $10,000.00. At this point your stock asset account will be increased by $10,000.00 with quantity one in your stock count. The double entry for this transaction will be debiting Stock Assets account $10,000.00 and crediting Account Payable account $10,000.00.
After tearing down the machine (M1001), check the usable parts and manually assign a 'cost' to these parts. Your cost assign should not be more than the purchase price of this machine.
Next, from MoneyWorks, do a Break Journal. Break Journal is one of the stock journals in MoneyWorks, which use to adjust stock item instead of accounts that you see in the General Journal.
In the Break Journal, select your stock item to break, M1001. Enter the usable parts with the quantity and cost in the list of the Break Journal. Check your total cost, if it is tally with the purchase price of the machine, you can save the Break Journal.
The Break Journal will simply credit out the quantity and average cost of the used machine (M1001) from the Stock Assets account, and debit the quantity and cost of the parts back into the Stock Assets account.