Dear all
In the manager’s production system, I make a purchase invoice for a supplier with item 1 and item 2, then I do a production order with item 3. This is good if I have the raw materials and I do the production. Now there is another scenario that is new to me, but it is a reality in my work I have a client, and this client is the one who buys raw materials, then I receive them from him in quantities only, without values, and I carry out the manufacturing process and get the manufacturing fee only. In this case, the client is the owner of the materials and I am only the manufacturer. Also, I must monitor the quantities of these materials in order to give the client a statement of them in terms of… The remainder in the balance of quantities or lost How do I manage this process through production orders?
Thank you very much
You cannot do that within Manager. The goods provided to you by the customer are not inventory, because they never belong to you. Likewise, the finished goods are not inventory. So neither should ever appear in your inventory records.
From an accounting viewpoint, you are simply providing a service. If your customer wants you to keep track of the materials they have temporarily lodged with you, you must do that separately.
I have a similar workflow although its not very common, I charge my client for the manufacturing process only and record that as a seconday income. I simply use a sales order to record the production Qtys and I use line descriptions to add details about the Qty in production steps.
Is this related to your other recent post at Added "Qty available", "Qty to be available" and "Qty to order" columns to “Inventory Items” - #24 by BawarYassin where in essence you should use Sales Quotes not Sales Orders?
Thanks for noticing but for this particular instance no. This is not very common in my business.