Hi,
I have a scenario like this:
- Purchased raw materials from a vendor (lets say it costs 10 USD). The raw materials are defined as Stockable in Inventory
- Sell some end products which have Bill-Of-Materials attached. As you might have guessed, the Bill-of-Materials consists of raw materials.
- Assuming the sale is 15 USD and the amount of raw materials used is 3 USD.
Using the Invoicing module to generate reports such as Profit/Loss and Balance Sheet, I expect to see a profit of 12 USD (15 USD sale minus 3 USD raw material as the cost of good sold). However, the cost of good sold is always equal to the purchased bill (10 USD). Therefore, my profit is only 5 USD.
Is there a way to calculate the profit taken into account only the portion of raw materials actually used, and treat the remaining inventory as assets?
Thanks.
Is your Bill of Materials setup to use 0.3 units ($3 worth) of the $10 raw material?
Hi Ray, all boms are setup as Kit with correct usage of raw materials.
Still unclear => and the amount of raw materials used is 3 USD.