Introduction: Sale Pending Method 1A

Overview

Sale Pending Work Orders Method 1A is used for short-term installation jobs that require a single trip to the customer’s business or residence.

With this method, only one Non-Inventory Interface Item is included on the DD transaction. When the workorder is attached to the sales ticket in Service, all parts and labor costs are written to the interface item on the DD transaction. Multiple labor lines with multiple technicians are allowed, along with multiple parts lines. Routing, with start and stop times, is also available.

Since this method assumes that your company knows the amount of revenue required to cover costs and profit, money is collected from the customer upfront. If necessary, you can accrue additional charges after the fact.

Summary

With Method 1A:

• All parts and labor costs from the job are captured on the DD transaction’s interface item line, which is viewable on the Sales Transactions Audit
• Both labor and parts inventory costs are written to the interface item’s product type in Sales Analysis, which displays the Sales Revenue versus Costs Ratio
• All parts inventory costs are written to the General Ledger

The Method 1A Process

The following steps must be completed in order when using Method 1A:

1. Set up the Non-Inventory Interface Item, Work Order Labor Item, and review the G/L settings.
2. Enter the DD transaction.
3. Create the work order.
4. Enter parts and labor.
5. Audit and update the work order.
6. Ship and update the DD order.
7. Review G/L Postings and Sales Analysis Reports