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Hi from just answer. I'mCustomer I'll assist.
The customer paid for the tool and is allowing you to use it to make parts for them, and perhaps for others. The customer owns the tooling now.
It comes out of inventory when sold. I would create a "Customer Tools - Jones" account for the tooling and a liability account to offset the tooling, x such as "Jones Tooling 2016" since you have to deliver the tooling at production end.
It's not depreciable, but both the asset and matching liability get reported on financial reports.
Thanks for asking at just answer. If you need additional support, please ask. If this covers the subject, please close out your request by leaving positive feedback. I'mCustomer
That changes things a bit.
When you bought the tooling, you would debit an asset for 50 and credit cash for 50. And this is depreciable.
When you sold 80%, you credited sales and set up an account receivable for 40. That overstates sales and the tooling account by 40.
Debit sales for 40, credit tooling for 40. There is no profit in the tooling sale, and you get to depreciate the 10.
I would still set up the tooling - Jones and corresponding offset liability for 40 each to keep track.
Debit customer tooling 1000
Credit liability - Jones 1000