Can anyone give us some advice on handling installation charges please?
We offer an installation service. Sometimes we use our own people and sometimes we contract out to a third party. We charge the customer as a line item on the quote/sales order and invoice. The problem is that the system has no cost for this so nothing posts to cost of sales so profit margin is wrong. Many of our sales are shipped from stock so we don’t have a job we post miscellaneous invoices to. We could change the standard cost of the item at the time but this is prone to user error and abuse. The cost also changes each time and is extremely variable based on project size and scope so an average cost is out of the question.
How do you handle this?