Collecting raw materials from customers while producing

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Posted on by Nitin_Chauhan_031989

Dear All,

I have a question regarding the raw material received from the customer for the production of his goods

We are manufacturer and sometimes we use to get the raw material from customer to produce his goods . here I wanted to understand how we can make entries in your system without affecting our accounting and without adding raw marshal to inventory. And we can have details in the system what quantities were received and how much was used in the production

regards,

Nitin

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Marketing

Inventory and warehouse management

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RE: Collecting raw materials from customers while producing

Nitin,

This is normal with some of my customers. I have created a Location or Bin specific to a Customer to store the Items they deliver. I will create an Item Card with 0.00 Cost. These Items I will include in the BOM from the specific location I receive into. Any receipts post 0.00 against the GL and I can see Inventory QOH. When I consume it will reduce inventory QOH and record no $ entry to GL.

Hope this helps.

Thanks

Steve