If you buy raw materials from one supplier but then give these materials to your manufacturer to make the product for you, the way you can set this up in RetailManager is summarised below: - Enter a Goods Received from the raw material supplier of $15
- Enter a Returned Goods to the manufacturer supplier of $15
- Enter an overstated Goods Received from the manufacturer supplier of $60 (the manufacturer invoice cost $45 plus the raw material supplier cost $15)
- Partially pay off the overstated manufacturer supplier purchase of $60 with the Returned Goods $15, bringing the manufacturer's account back to $45.
These steps are detailed below: | UI Expand |
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| title | Recording goods purchased for manufacture |
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| - Process a Goods Received transaction for the RAW material/s from the material supplier at the usual cost.
 - Set up the manufacturer as a supplier.
When the material goes to the manufacturer process a Return Goods transaction for the amount of material/s being used. This will create a debit note for the manufacturer in the Accounting package and take the material out of stock in the RetailManager software.
 - When the product has been manufactured, process a Goods Received transaction selecting the manufacturer as the supplier. Enter the finished product item code and the full cost including your material cost and the manufacturer's own material and labour cost.
This will put the finished product in stock and a purchase bill will be created in the Accounting package for the full amount of the product. Note: In order for RetailManager to account for the entire cost of the item the cost of the raw materials must be added to the cost from the manufacturer on the manufacturer's Goods Received. In this example the raw materials cost $15 and the invoice from the manufacturer is $45. The Goods Received entered for the manufacturer would be $60 which is the $15 + $45.
 - In your accounting software, partially pay off the raw material component of the manufacturer's purchase with the debit note created from the Returned Goods in step 2. This way you can be certain that manufacturer supplier's account is correct.
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- Process a Goods Received transaction for the RAW material/s from the material supplier at the usual cost.
- Set up the manufacturer as a supplier.
When the material goes to the manufacturer process a Return Goods transaction for the amount of material/s being used. This will create a debit note for the manufacturer in the Accounting package and take the material out of stock in the RetailManager software.
When the product has been manufactured, process a Goods Received transaction selecting the manufacturer as the supplier. Enter the finished product item code and the full cost including your material cost and the manufacturer's own material and labour cost. This will put the finished product in stock and a purchase bill will be created in the Accounting package for the full amount of the product. Note: In order for RetailManager to account for the entire cost of the item the cost of the raw materials must be added to the cost from the manufacturer on the manufacturer's Goods Received. In this example the raw materials cost $15 and the invoice from the manufacturer is $45. The Goods Received entered for the manufacturer would be $60 which is the $15 + $45.
- In your accounting software, partially pay off the raw material component of the manufacturer's purchase with the debit note created from the Returned Goods in step 2. This way you can be certain that manufacturer supplier's account is correct.
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