Maybe this is not an appropriate topic here. But I am asking for help as a Manager user.
Our business is to provide broadband internet service to residential, corporate user & re-seller.
During installation, we charge a one time, non-refundable charge as “Installation Charge”. And the monthly recurring charge is paid by the residential customers every month.
Resellers pay only the bandwidth price every month.
Number of Residential Customers > 1,000
Number of Corporate & Reseller < 50
Q # 1
How should I categorize sales or service revenue? Is there any special rules for “One Time Installation Charge”?
I) Purchase monthly Internet Bandwidth from ISP/IIG company (all bandwidth is not sold each month. It can not be stored. It is to be either sell or waste within one month)
II) Pay other providers for data connectivity
III) purchase cables, switch, routers, network tools & equipment, device & accessories from suppliers which are used-
a) to establish broadband connection to residential & corporate customers. These materials are low cost, owned by us & related to “installation charge”.
b) to establish connection to resellers. These materials are costly, owned by us & there is no “installation charge”
Q # 2
What would be the procedure to record “Cost of Sales/Service”? And how would be the “inventory system”?
Please provide me a solution for setting up this business into Manager.
Thanks in advance.