I know someone who has a raw materials job order. They pay for materials, and the job is completed. They are charged with the costs, but no matter what, they have no idea how much it will cost.
The job is about to become one of the most expensive jobs in this world.
The real question is how much money does this person save by not doing their job? The answer is, not very much. Not only will the materials cost a lot more, but the job itself is going to have to be re-done. This means that the person who purchased them will have to pay for them, but they won’t be charged for it.
This seems like a good way to stop people from purchasing materials they didn’t need in the first place. It seems like it would also discourage them from trying to cheat the system, but it doesn’t. How often do you need to buy a new pair of shoes? How many shoes does someone need to buy before they feel like they can afford them? This is the same thing with materials.
How often do you buy something before you need it? How often do you need something you don’t have yet? No one needs shoes, or a new cell phone. This is called a “job order cost.” This is what you’ll need to be included in a job order. By having the job order cost recorded in the price of the materials for you, you can prevent people from getting them cheaper than you paid for them.
Your job order and equipment are usually just the things you need to buy. If you need a new cell phone, you need to be the one that uses the cell phone. If you need a new cell phone, you need to be the one that uses it. If you need to work as a programmer, you need to be the one that works with that computer. You can’t pay for a new cell phone, but you will get a new one when you buy a new cell phone.
The most common mistakes you make in hiring a new contractor are getting a contractor to build a building for you, getting a new contractor to build a building for you, and getting a contractor to build a building for you all by himself.
When you hire a contractor, the main thing you should record as a debit to is a specific price for the materials you have to supply for the job. The best example of this is when you hire a carpenter to build a new house for you. The only thing you should pay for is the materials for the house. You should NOT record a charge for the materials the contractor uses. You should record a debit to the contractor for his time and materials.
Again, I know this sounds stupid. I know people who use this system for everything. They go to work and get paid in cash, they get paid in credit cards, they have debit cards, and they forget to record a debit to the bank. They even forget to have a line of credit set up with their bank. That is, until one of their accounts gets closed, and they find themselves with a bill they can’t pay.