Stock Treatment

Stock Treatment

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Hi,

My client provides IT services. They purchase items on behalf of their clients and then charge them the cost price of the item plus installation and consulting fees. My question is how I should treat the item they have purchased – should this be a non stock item? They do not make a profit on the items purchased

 They also have spares such as cables and connectors – would this constitute stock?

I currently use QuickBooks Pro 2013

Thanks for your help in advance

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By Chris Smail
21st Nov 2012 19:08

What information does the client want?

Steer clear of 'Stock' unless you really need to use it properly. If they are buying job specific kit then put the purchase against the job it is bought for and bill it as non stock.  Just make sure the job costing works, has everything on it and is regularly reviewed against quotations. Closing the Quotation- Costing loop and reviewing how good the job costing is  is probably the second most important thing in the business after credit control.

Just loose consumables as direct costs unless someone can really convince you that the old boxes of out of date cable and connectors have a genuine resale value as opposed to 'Come in handy sometime'.

 

Chris Smail - www.langer.co.uk

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Replying to Kernowlive:
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By JDM
21st Nov 2012 20:10

Thanks Chris , that was helpful

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