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Item buyback and refurbishment

Hi Gurus,

We purchase widgets from customers and then use a third-party vendor to refurbish the item. We then enhance the item in-house and introduce to inventory as a serialised item.

Can you recommend;

  1. How do we include the item purchased from a customer on a Customer Sales Order (there-by reducing the amount due if there are items sold to said customer)?
  2. Which methodology is best suited to capture this process while incorporating all associated costs to calculate the item gross margin i.e. third-party vendor costs, internal labour and purchase from customer?

Thanks,
Daniel

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