You would report for that job and the same Item.

The Bill or purchase entry is Job Tracked as Not Billable, because you are using Progress Invoicing from the Estimate. That means the Direct Purchase is Job Tracked for the reporting to work, but Not Billable.

You won't mark the purchase details billable unless you intend to use Add Time & Costs. You won't use Add Time & Costs, if you Invoice from the Estimate or from an SO as Fulfillment tracking.

Now you run reports. Example: Job Profitability Detail will show all Items Purchased and all Items Sold. You also run Estimates vs Actuals Detail for that one job, to see this.

I have an attachment, it is side-by-side for Job Profitability Detail and P&L for that same job. Look at the Building Permit entry at the bottom. This shows we Wrote the check wrong, not using the item, so the Cost = No Item. But the Customer shows Twice the Value. Either this company marks up the cost 100% or they Double-charged the customer.