We are setting up a clothes trading company:
The company buy textile and materials from a suppliers and send for a subcontractor to manufacture (I can use subcontracting with raw material supply)
The company then send the clothes to another service provider to do embroidery (hence cost added) - I am not sure how we can do this to have proper cost added to the items.
u can do subcontracting process in next one again
The first subcontracting process, we have the cloth as item and textile as the material supplied in the PO. In the second PO, what will be the item (the cloth again? If so then won’t we have double the cloth brought? ) and what will be the material supplied by us?
there two things i guess u can do
1- making anther subcontracting process with new item code cloth + code refer to embroidery and receive it in your warehouse
2- make embroidery as item and sell it with cloth