Can we move a committed cost to actual cost at inventory PO/invoice match rather than goods receipt?
We are trying to record project costs tied to inventory in advance of goods receipt. We want the costs in the ITD cost bucket so they are used in the percent spent revenue calculation
Content (please ensure you mask any confidential information):
We have a long lead material buying process where we:
- Order things like sheet metal a year plus in advance of when it is consumed in manufacturing, to lock in commodity prices and hopefully get more favorable pricing
- Enter and pay invoices from the material supplier long before the supplier ships the material
- We have rights to bill our customer for this advance purchase, and can include the cost in our percentage of complete revenue calculation