Powder Coating
Here we have an example on how to deal with enhanced value to a product.
One example is Powder coating, we buy an item from a supplier and then send it out for powder coating which increases the value of the stock item. It generally comes back as a new item.
The process will have the following benefits:
- Control which items are sent for Powder Coating
- Know who has the items
- Shows the value powder coating
The first thing we need to do is create an internal Creditor account for powder coating.
If you have multiple suppliers who handle enhanced value to a product, then it is best to create an internal creditor account for each. This way one knows which supplier has the stock that was sent for powder coating.
Make this creditor a Non VAT / GST supplier
Setup the linked supplier to update cost
Go to the item to setup a supplier cost link.
This means that when the stock that is purchased from the actual supplier, updates the internal supplier with the cost.
When sending the stock to the Powder coating supplier for this item, it will bring the correct cost in, which will always be updated.
Sending the stock to the powder coating supplier
Create a Stock Return Document of the stock that will be sent to the supplier.
Ensure that your cost of the item is the same value that you purchased it at