Question

Sales code for a service

  • 19 August 2021
  • 7 replies
  • 221 views
N

hi folks

can anyone advise on the best way to setup a part that we can use to sell a consultancy type service? hence non stocked, non manufactured, not bought in etc but will have a pre agreed cost associated with the “part” to our customer

 

its not something that we normally do, so i dont want to go down the road of full service management etc

 

any ideas?

 

mal

 

7 replies

C

We use Non-Quantity Bearing parts for this purpose. Just leave the Quantity Bearing check box unticked on Part Entry. You can still sell the part in whatever quantity you choose (e.g. you might want to sell a service per hour or per day), but there is no on hand quantity anywhere. You will still get STK-CUS or STK-MTL part transactions when selling the ‘part’ on sales orders or issuing to jobs.

Chris Westwood ERP Manager Berthon Boat Company Ltd. Lymington GB 01590 647434
M

There are two ways we do this.

  1. Setup a drop ship part and a supplier that is internal to our company.  We typically use a price of $1 = 1 ea, so when we sell the consulting for $100 we would enter 100 ea.  We can invoice against the PO if we want to generate AR along the way.  When the drop ship PO is created it, it is routed to the person in charge of the service.  Our supplier price list has a cost of $0/ea so no AP is created.  This is simple, but cost tracking against the revenue is a challenge.  You might be able to enter costs into the AP invoice, but then you have an AP challenge. 
  2. Make a manufactured part, with a method using a single operation.  Setting up the part class and product group and having a dedicated planner helps separate it from our regular manufacturing.  The job is created and routed to whomever is providing the service.  Time can be periodically logged to the job until it is complete and closed.  This is more complex because of the resource group, employee setup, time entry, and WIP associated with doing it right.  I think this provides the best way to track costs and profitability on the service, especially if you want to track time directly to the delivery of the service. 

Hope this is of some use.

Matt Stuppy

N

thanks folks, i will look into both your suggestions!

 

mal

P
Userlevel 3

The way we set it up is below, and it works well

  • Qty Bearing checkbox clear
  • Non-stock item checkbox clear
  • Standard cost of $x
  • Process MRP checkbox clear
  • Note that the product group and part class below control the GL accounts impacted with transactions (for instance, the inventory context should be a contra/offset account somewhere in the income statement, not on the balance sheet)

 

  1. Service Labor Parts
    1. For Service to record their time against the Sales Order and charge the customer for the time, we will create several non-physical parts, named something like the following:
      1. Service Time-Portables
      2. Service Time-Hand Pieces
      3. Service Time-Chairs/Stools
      4. Service Time-Elect
      5. Service Time-Motors
      6. Service Time-Anesthesia
    2. These will have the following parameters, and will likely be manually created in Epicor (Not via DMT)
      1. Product Group=CSTSVC
      2. Part Class = SVC
    3. New UOM will be created (Scott)
      1. UOM of Hours with 2 decimal places
      2. UOM Class of Time
Paul Jackson CFO Aseptico Woodinville WA
C

I want to use Counter Sale to sell Engineering hours, no job.

Part - Consult -   non-physical parts

Internal Price: - is this the engineering hourly rate?
Sales Unit Price - what rate we sell to the customer per hour.

I have a GL account attached to the Prod Group / Part Class but where will I see the COGS?  Is that the Internal Unit Price? On the part tracker, costs tab, I don’t see any costs at all. 

It’s the only thing I am missing. 

 

Thanks for any steering.

 

M
Userlevel 2

You’ll need to do a Cost Adjustment in order to get unit costs into the PartCost table.

C

Awh, of course.  Thank you.

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