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Attributing shipping cost to item value and dealing w/ waste

edited Nov 26, 2019 8:38AM in Accounting / ERP

I'm working on overhauling some of our inventory setup to better match our current procedures for manufacturing our products and I've come up on the following scenario:

[LIST=1]
[*]We buy bulk sheet goods measuring 5' x 5'
[*]We ship the sheets to a "converter" that will cut them down to 9" strips
[*]The converter ships them back to use and we then use the strips as components of Assemblies that we build
[/LIST]

To roll the conversion service cost (cutting into strips) we purchase Inventory Items from the converter then consume them as components of the Assembly we build.  This works great.

Steve Klett | Senior Developer
NetValue Technology

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