Selling Service

Hello everyone,

as a service company we sell our services which is non-stock item but some times we outsource this service, what is the right way to process this since I am selling one service and I will be purchasing another service and do I need to prepare material request for this process



How is your company billed for the service by the subcontractor - what is the UOM? Your company could issue a Purchase Order to the subcontractor and a Sales Invoice to the customer.

Thank you Smino,
it is very straight forward i sell my using Nos and buying using Nos
for example
i will quote (xyz consultancy service qty 1 for $1000)
then i will ask a company called abc to do the service (abc professional service qty 1 for $600)

if I issue a PO to abc it looks like fine but when I check the gross profit repost it doesn’t reflect the cost of the $600

I would change the UOM to unit, however that may not matter.

The Item being purchased and sold should have the same name , for example simply consulting service. There could be an Item Group with different consultancy service or variants with different suppliers. In any case the same item must be bought and sold to reflect the profit , if I understand correctly.

it looks like a common issue