In the following example we are replacing a part that was included in the original cost of a machine. For example, you sell a machine (copier, etc.) that includes replaceable components (drum, toner, etc.) as part of the original cost of that machine.
One of those components fails and you want to replace that component from stock but not affect the profitability of that machine (or the contract that machine is on).
Step 1: New Replacement Part Out
Create a job and invoice at exact cost.
Create a job (linked to the contract/machine) and sell the replacement part at the part's exact cost. For example, drum cost $100 ex tax, then sell price ex tax $100.
It is important that sell price ex tax is the exact cost of the specific part you are supplying as a replacement.
If the part is serialised, check on the stock's Stats tab for the exact cost of the part with that serial number.
If the part is not serialised check the Stats tab for the exact cost of that part in that stock location on the oldest purchase order (due to FIFO Jim2 will use the oldest stock in that location).
Invoice that job to the customer (or optionally to yourself with the customer as From# and Ship#) and the customer will now have an outstanding invoice for that amount.
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At point of invoicing, select Don't Send as we don't actually want to send the invoice to the customer. |
Step 2: Faulty Part In
Create a Debtors PO and finish at exact cost.
Create a Debtors PO to buy in the faulty part using the exact cost used in Step 1 for both the Cost (COG) and Price Ex.
The Cust# on the Debtors PO is the same as used in Step 1.
You may optionally change the stock location to purchase the faulty part into your quarantine location.
Finish the DPO which will put the faulty stock in stock at the exact cost of the replacement part and create a credit for the same amount as the outstanding invoice.
Step 4: Apply the Debtors PO Credit to the Outstanding Invoice
From Debtors, apply the credit created by the Debtors PO in Step 2 to the invoice created in Step 1.
Step 5: Return Faulty Part to Supplier
Assuming the faulty part is under warranty, you can now return the faulty part to your supplier using a Return to Vendor for credit or replacement.
Further information: