customer provide material

[Former Member]

hi,

raw material A is provide by customer, which mean the cost is "0", this material A including in BOM. The finished goods cost is roll up from its sequence raw material. However, raw material A cost is "0" becuase it provide by customer. Then how can i roll up the cost for finished product? pls advice. thanks

[JL23 · Accepted solution]

what costs would you like to "roll" if you have not any?

You are probably a subcontractor to your customer.

The finished material price should just be the manufacturing costs.

You will charge your customer only for the manufacturing, but not for the material he has provided to you for free.