If you buy a part in bulk, you may want to make a second part number for the sale quantity. If you just sell a bulk part in fractional quantities, the margin will be low. The higher cost price will result in a lower markup, unless you adjust it manually.


For example, let’s say you buy FluidX in 55 gallon barrels, and then sell it by the quart. You make a part number up, and order with that.




When the barrel is delivered, you receive the PO, and then subtract it back from Inventory.




Then, create a second part number for selling. In this case, we bought 55 gallons, or 220 quarts. Divide the purchase price by 220 to calculate the cost. Last, adjust the quantity on hand for this, increasing it by 220.



In the event that the cost of the bulk purchase is not evenly divisible by the sale quantity, you have two options to cope with the imbalance. For example, if the barrel cost $3,300.33, the cost price of the quarts would come to $15.0015. Obviously you can’t sell something for $.0015. 


Option one:

  1. Order by the sale quantity (quarts in this case), and make a second part number just to rectify the purchase price. 
    1. Quarts = $15.00 x 220 = $3,300
    2. (Accounting balance part) = $0.33 
    3. Order and receive both parts, and sell only the quarts. 


Option two:

  1. Simply order the bulk quantity, sell the sale quantity, and balance it out in the accounting platform later.

As always, regulations will vary between municipalities, and every shop has its own best practices for accounting. Shop Manager recommends consulting with your bookkeeper to determine the best solution for your shop.