Hi
Please share your procedure to handle liquidated damages. In accounting, it is a reduction of revenue. How do you show to operation, when the reduction is not in the form of sales order and factor this in and show the proper margin?
Are you wanting to show this proportionately to the specific product you are making? Like would you accrue more liability if you made part A vs part B?
Or are these damages that you actually recorded- an actual expense?
Maybe you could plop those costs into the material burden cost element if you are using standard cost? 
You are saying margin as in you’re putting it in cost of goods sold. Do you want to make this a product by product cost or can you just make a journal entry?