View Full Version : Correct procedure for handling special orders

08-19-2001, 06:11 PM
We are using the inventory system extensively. In our business we have many occassions when we purchase products that are not in our inventory on a special order basis for a customer. It is impractical to setup an inventory item for this type of in/out scenario. The problem is that I want to see the cost of this product reflected in the customer ledger so that I can gauge profitability on an order by order basis.

Anyone have any suggestions?

Thanks a lot.

08-21-2001, 08:24 AM
If you are really interested in getting to the bottom line (profitability), I recommend using the Job ID feature, especially if you use PCW where you can use the Time & Billing function to allocate manhour charges to particular jobs / special orders.

75% of my revenue is derived from services (such as data conversion, training, etc), and I have found that the Time & Billing feature to be an important tool in my quarterly manpower and marketing plans.

With Time & Billing I am able to allocate manpower costs to services revenue. Therefore getting a 'real' gross profit on services.

I also have a better understanding of my average profitability on product sales. My product sales includes 90 days of help-desk support. Previously, it was just product sales - product cost = gross profit. Now with Time & Billing, I know how much manpower cost I need to allocate to each product sales.

Hope that helps for your business as well.