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The finished material is preferably valuated. This allows a product cost run on the material based on added labor and added materials which the customer does not supply; which can be compared to the selling cost (to determine whether you are making any profit). The cost run will ignore CFM materials which is correct - they are non-valuated.
The material itself can have a selling price which is the cost of services plus any added nonCFM material. By the way even a non-valuated material can have a selling price (which is different from inventory valuation).
| | | ---------------Original Message---------------
From: kalsoniraj
Sent: Wednesday, January 12, 2011 11:28 AM
Subject: Being set up as Subcontractor
Hi Denise:
Thanks for the reply- additional question
The finished material- should that be valuated or non valuated?
If non valuated- where/ how do I charge the service fee on sales order?
Could that be just set up a some type of service fee?
If Valuated then system requires costing info for the components which are non valuated?
regards,
Raj Patel |
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