Metals surcharges -- best way to handle
We're working on revising how we can handle metals surcharges for raw materials for our vendors. For example, we buy parts from a foundry. They charge us $1,000 for the parts and a surcharge for the metal based on the pounds. So, that cost could be another $150, let's say.
We are of two minds. One camp wants to tie the surcharge to the part, I say it should appear as a cost to the work order, but post to a cost of goods sold account.
Anyone run across this same issue?
Thanks!
Casey Turton