Allow standard costs to be setup for non-managed products when applicable. The system supports the ability to sell non-managed products such as services but it does not allow us to setup a standard cost for that non-managed product.

For example, we may sell ‘installation services’ at an hourly rate. These ‘services’ have their own costs such as salary, travel, etc. that need to be recognized so that profit margins do not show 100% but rather a realistic representation of actual profit.

The standard cost of inventory products is credited to inventory. For non-managed products, the standard cost would be credited to a definable liability account. The actual cost of the non-managed products will be debited to the definable liability account and the difference would be transferred to PPV.

by: Tim W. | over a year ago | Distribution