Inventory costing

We're a jobshop. Some of our customers generate enough repete
business to establish some parts as 'Make to Stock', setting
min/max levels and reorder points. However, a large portion of our
business is 'Make to Order', and we never know if the customer will
ever come back for that part again.

The boss believes that, since we don't know if the customer will
ever come back for that part, and we can't sell it to anyone else, it
has *no* value. But, rather than just throw it away, we *do* want to
be able to see if we have any 'in stock'. Therefore, the boss would
like us to be able to put all the costs of a job against the parts we
actually ship, and put any extras into inventory at no cost.

We tried 'scrapping' out any extra parts before our 'final operation',
shipping the parts, and doing an inventory adjustment to put the
extra parts into inventory. However, since we use 'Average
Costing', Vantage still put the parts into inventory with a value
(ignoring the extra work for all involved!).

How has anyone else handled this issue?

Malcolm Spann
Malmberg Engineering
(925) 606-6500