Non valuated material consumption in projects

[Former Member]

Hi,

How to track the non valuated material issued for consumption against network that is not planned in the project? I would require reversing the consumption based on material the contractor returns after actual consumption at the site. My default material valuation is valuated project stock.

The purpose is to track the non valuated material consumption project wise.

[Former Member]

Yes, the amount adjusted in the next bill.

[Former Member]

Thanks Ahmed,

Our business process starts from receiving order from customer to deliver a set of material and related work. We are procuring material as a valuated project stock. As and when the material received partially at site, immediately a partial bill is raised to customer for material received value. Itemized billing is required each time to deal the taxes. (Suggest a strategy to be followed at this stage).

The same material is to be issued further in to project for consumption, contractor wise. (How to identify the contractors in the project) So far we are identifying them thru network. Each network represents a specific contractor. At the end of the job, the contractor returns the left out material after actual consumption.

Based on the joint measurement, we raise a service bill to customer for services/work done partially at the site.

[former_member203108]

You mean to say, you will purchase 100Nos. of Material A, and you will deliver and bill your customer for 100Nos. But the actual consumption may be 95Nos. and the balance 5 Nos. will be taken back by you. How about the customer, will you still show that 100Nos as actual consumption to the customer? or do you adjust that amount in your next bill?

[former_member203108]

I am not aware of your entire process, But my suggestion would be to issue the material to the project stock first, you treat this as an material issued to your contractor. Now when your contractor confirms the actual consumption, issue the material from project stock to network activiy. Balance unconsumed material you can return from project stock.