I’ve consulted the help topics on purchase invoices and production orders, but my situation seems to be…between these two options.
I run a small self-publishing company. We design children’s books, send the designs to a manufacturer, and purchase the final product (books) from the manufacturer. It seems like the costs associated with designing the book should be linked to the cost of the item, but I’m not sure how to associate these.
I receive an invoice from the manufacturer, but the unit cost from the manufacture doesn’t include the design cost because they just used my designs. I could just calculate the design cost into the unit cost, but that seems error prone and confusing if someone is looking over the books. Any ideas on how to properly log this?
The closest thing I can come up with is logging the book purchase from manufacture as “raw books”, then creating a production order for the final product as “sellable books” and adding a non-inventory cost for “design”. This options seems weird to me, though, because these expenses will be logged as payments to some other vendor prior to the purchase order.