We have a construction company. We have an item list, with all items (aluminum, glass, metal, etc) that we purchase and budget for on each job. We create the estimate (the budget for the project) and account for all materials that will be used in the job and create an invoice from the estimate (progress billing) but we put everything on the invoice to the "sales" account. My question is, how can we account for the cost AND the revenue, per item, on the job profitability report? Right now, we only see the breakout of all items purchased but the revenue is all going to one account (the sales account) and is in a lump sum, instead of broken out. Is it possible for 1 item to speak to a revenue and a cost account?
This isnt just a reporting issue - it depends on the type of sale agreement, and what you want your customer invoices to look like.
If you are selling 'materials & labour' then you can and should have itemized estimates that will create itemized progress invoices and also itemized reporting.
But if your customer estimate/agreement is a 'lump sum price' then you can end up with your issue. One solution is quote lump sum, then if successful (and with the customers consent) substitute a new estimate that includes the itemization you want - and has the same grand total. Then use the 'new' estimate to create the progress bills.