Summary
Inventory needs to include labour costs, shipping, freight and or extra costs related to assembled inventory (Bill of Materials - BOM) items and or Cost of Goods Sold (COGS).
Description
Cause
Resolution
Method 1: Add labor/shipping for item purchased.
Add the shipping cost to the original purchase cost(purchase price + shipping) , then sage will average the cost out per item.
Method 2: add labor/shipping cost directly in the cost of each inventory
- In the Home screen, go to Inventory & Services.
- Open the Build from Item Assembly window.
- under Assembly Components, add the inventory item you want.
- Add its quantity in the Qty column.
- under Assembled Items, add the same inventory item you want.
- Add its quantity in the Qty column.
- Change the Unit Cost to the higher unit cost that would include the labor/shipping cost.
- Click Post.
- This will adjust the cost for the inventory item to the newer cost.
Method 3: Add the cost to a separate cost account
- In the Home screen, go to Inventory & Services.
- Open the Build from Item Assembly window.
- under Assembly Components, add the inventory item you want.
- Add its quantity in the Qty column.
- under Assembled Items, add the same inventory item you want.
- Add its quantity in the Qty column.
- In the Additional Costs field, add the total labor/shipping cost.
- Click Post.
- This puts the extra cost into an expense account dedicated to inventory without affecting the inventory unit cost.