Invoicing and expenses query

[Mike or Penny Novack]

> What about your profit on those?
> The majority would not charge out at the purchase price.
>
> I don't know of an automated way to do this, but would be using an
> unposted invoice to keep a record.

We need to take business questions at face value because we don't know 
the nature of the business. The comment about "profit on stuff purchased 
for the customer" is an example of that. It depends very much on the 
nature of the business, what is usual and customary, and what is in the 
contract.

For example, in a "cost plus" contract (the bid is for doing the work, 
materials for whatever they cost added to the bill) be in big trouble 
sneaking* a profit on the materials. If I were designing a system for 
somebody, and they didn't have extra hardware resources for the testing 
phase, rental or purchase of computer resources would be part of the 
contract, but I would have to charge that to them at cost.

Michael D Novack, FLMI


* That would be by "kick backs"from the materials suppliers since could 
be expected to be required to produce receipted invoices for the materials