How To Account For Drop Material?

AccountingToddler · ‎December 14, 2022

I'm looking for suggestions on how to account for drop material, please!

* I buy rolls of material 48" x 150'. I can only use about 85% of the roll - the other 15% is waste.

* I sell this material by the square foot to our customers.

* In UOM I have a setup that says: Name='48x150 Roll' / # of SQFT = 600.

* Also in UOM: Purchase=48x150 Roll', Sales=Square Foot, Shipping= Square Foot

This is all well and fine but we build assemblies with this product. I want the true COST of the material to reflect the 15% drop. The problem I'm facing is with POs. If I just 'cheat' the system and say that a roll only equals 540SF then when I go to buy this material it takes my SF cost, multiplies by 540, and expects the bill to be 540*SFCost. In fact, it should be 600*SFCost.

Any help would be greatly appreciated. Thank you in advance!

PS - If it matters, I am on PC Desktop, Premier Plus, Manufacturing & Wholesale Edition, 2023.

Thanks Again!!

AccountingToddler · ‎December 14, 2022

Sometimes I just need to write things out and re-read what I wrote to make sense of it better.

I think I came up with a solution that'd work. Just add 15% more SF to the assemblies and that should equal it all out. Would that be accurate? POs would work. Inventory remains accurate...

If I'm wrong I'd love to hear how to better do it.

Thank you all again!

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How To Account For Drop Material?

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